What were Aw's operating expenses for the year ending December 31, 2023?
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, 2023, were $75,326. This figure reflects the costs Aw incurred to run its business operations during that period.
Prospective franchisees should understand that operating expenses are a critical factor in assessing the financial health and profitability of a franchise system. While this number provides a snapshot of Aw's expenses at the corporate level, it doesn't directly translate to the operating expenses a franchisee might incur. A franchisee's operating expenses will include costs such as rent, labor, inventory, marketing, and other local business expenses.
It's important for potential franchisees to review Aw's financial statements in detail and compare these figures with industry benchmarks to assess the company's financial performance. Additionally, they should develop a comprehensive business plan that includes projected operating expenses for their specific franchise location. Speaking with existing Aw franchisees can also provide valuable insights into the typical operating expenses one might expect to encounter.