What were the operating expenses for Aw for the year ending December 31, 2023?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIT) RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Revenues | |||||
| Franchise fee revenue | $ | 8,000 | $ | 8,250 | |
| Royalties | 190,526 | 203,473 | |||
| Total Revenue | 198,526 | 211,723 | |||
| Operating Expenses | 39,530 | 75,326 | |||
| Net Income | 158,996 | 136,397 | |||
| Members' Equity (Deficit) - Beginning | 617 | 11,732 | |||
| Membe |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the operating expenses for the year ending December 31, 2023, were $75,326. This figure is part of Aw's financial statements, which also include revenue, net income, and members' equity information for comparison.
For a prospective Aw franchisee, understanding the operating expenses is crucial for assessing the financial health and profitability of the franchise. It provides insight into the costs associated with running the business, which, when compared to revenue, helps determine the net income. Knowing this figure allows potential franchisees to forecast their own potential earnings and manage their finances effectively.
It's also useful to compare the 2023 operating expenses to those of the previous year. The FDD shows that Aw's operating expenses for the year ending December 31, 2022, were $80,169. This decrease in operating expenses from 2022 to 2023 could indicate improved efficiency or cost-saving measures implemented by Aw. Reviewing these trends over multiple years can provide a more comprehensive understanding of the financial performance and stability of the franchise.
When evaluating this information, a potential franchisee should also consider factors that could influence future operating expenses, such as changes in market conditions, increased competition, or fluctuations in the cost of goods and services. It is important to conduct thorough due diligence and consult with financial advisors to make informed decisions about investing in an Aw franchise.