What was the total amount of current liabilities for Aw as of December 31, 2023?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
BALANCE SHEETS RAYYAN PIZZA FRANCHISE LLC
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2023 | 2022 | |
| Assets | ||
| Cash | $ 4,705 | $ 33,561 |
| Due from franchisee | 7,837 | 1,226 |
| Due from related parties | 51,502 | 51,502 |
| Total Assets | $ 64,044 | $ 86,289 |
| LIABILITIES AND MEMBERS' EQUITY (DEFICIT) | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ — | $ 4,834 |
| Loan payable SBA | 513 | 476 |
| Loan payable WinTrust | 10,073 | 10,073 |
| Contract Liability | 8,000 | 8,250 |
| Total Current Liabilities | 18,586 | 23,633 |
| Long Term Liabilities | ||
| Loan payable SBA, net of current | 27,341 | 25,424 |
| Contract Liability, net of current | 17,500 | 25,500 |
| Members' Equity (Deficit) | 617 | 11,732 |
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the total current liabilities as of December 31, 2023, were $18,586. Current liabilities represent Aw's obligations due within one year. These liabilities include a loan payable to the SBA of $513, a loan payable to WinTrust of $10,073, and contract liabilities of $8,000.
Understanding the composition of these current liabilities is crucial for prospective franchisees. The loan payable to SBA and WinTrust indicate Aw's debt obligations, while contract liabilities likely represent deferred revenue from franchise fees or other services. Monitoring these liabilities helps assess Aw's short-term financial health and ability to meet its immediate obligations.
Franchisees should pay close attention to the trend of current liabilities over time. A significant increase in current liabilities could signal potential financial strain, while a decrease might indicate improved financial management. Comparing these figures with those of other franchisors in the same industry can provide a benchmark for assessing Aw's financial stability.
It is also important to note that the financial statements are audited, providing an additional level of assurance regarding their accuracy and reliability. Prospective franchisees should review the complete financial statements and consult with a financial advisor to fully understand the implications of Aw's liabilities and overall financial condition.