What were the operating expenses for Aw in 2022?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| ficit) | 617 | 11,732 |
|---|
STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIT) RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues | ||||
| Franchise fee revenue | $ 8,250 | $ 8,250 | ||
| Royalties | 203,473 | 240,600 | ||
| Total Revenue | 211,723 | 248,850 | ||
| Operating Expenses | 75,326 | 80,169 | ||
| Net Income | 136,397 | 168,681 | ||
| Members' Equity (Deficit) - Begi |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company's operating expenses for the year ending December 31, 2022, were $80,169. This figure reflects the costs Aw incurred to run its franchise operations during that year.
For a prospective franchisee, understanding Aw's operating expenses is crucial for assessing the financial health and stability of the franchisor. These expenses can include costs related to salaries, rent, marketing, and other administrative functions necessary to support the franchise system. A significant increase in operating expenses without a corresponding rise in revenue could indicate potential financial challenges for Aw.
It's important to note that these are Aw's operating expenses as the franchisor, not the operating expenses of an individual franchise unit. Franchisees will have their own separate operating expenses related to running their specific locations. Reviewing the franchisor's expenses provides insight into how Aw manages its own business and supports its franchisees, but it does not directly translate to the costs a franchisee will incur.
Therefore, while this information is valuable for assessing the overall financial picture of Aw, prospective franchisees should also focus on the financial performance representations (if any) and conduct thorough due diligence to understand the potential operating expenses of their own franchise unit.