What was the net increase in cash for Aw for the year ending December 31, 2024?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
g | $ | 3,509 | $ | 617 | |
STATEMENTS OF CASH FLOWS RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Cash Flows from Operating Activities | ||||
| Net Income | $ 158,996 | $ 136,397 | ||
| Adjustments to reconcile net income to net cash | ||||
| provided by operating activities: | ||||
| Changes in assets and liabilities | ||||
| Due from franchisee | 7,837 | (6,611) | ||
| Accounts payable and accrued expenses | — | (4,834) | ||
| Contract Liability | (8,000) 158,833 | (8,250) 116,702 | ||
| Cash Flow from Financing Activities | ||||
| Loan from SBA | 1,060 | 1,954 | ||
| Cash Flow from Investing Activities | ||||
| Members' (distributions) | (156,104) | (147,512) | ||
| Net Increase in Cash | 3,7 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the net increase in cash for the year ending December 31, 2024, was $3,789. This indicates that Aw's cash flow from operating, financing, and investing activities resulted in a modest increase in its cash reserves during that year. In comparison, the previous year, ending December 31, 2023, saw a decrease in cash of $28,856. This suggests a significant improvement in Aw's cash management and overall financial performance from 2023 to 2024.
For a prospective franchisee, this information is crucial as it provides insight into the financial stability and operational efficiency of Aw. A positive net increase in cash typically reflects healthy business operations and effective financial strategies. Franchisees can interpret this as a sign that Aw is managing its finances well, which can contribute to the long-term success of the franchise system.
However, it's essential to consider this figure in conjunction with other financial metrics and qualitative factors. While the net increase in cash is positive, the actual amount is relatively small. Further analysis of the cash flow statement, including the details of operating, investing, and financing activities, would provide a more comprehensive understanding of Aw's financial health. Additionally, comparing these figures with industry benchmarks and the performance of other franchises can offer a more balanced perspective.