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What was the total amount due from franchisees to Aw as of December 31, 2022?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

during the audit.

Muhammad Zubairy, CPA PC Westbury, NY June 6, 2024

BALANCE SHEETS RAYYAN PIZZA FRANCHISE LLC

ASSETS
YEARS ENDED DECEMBER 31
2023 2022
Assets
Cash

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, as of December 31, 2022, the total amount due from franchisees to Aw was $1,226. This figure represents the aggregate outstanding balance that Aw's franchisees owed to the company at the close of the 2022 fiscal year.

For a prospective franchisee, this indicates the level of financial interaction and potential debt owed to Aw by its franchisees. It is important to note that this amount can fluctuate year to year, as seen by the increase to $7,837 in 2023. This could be due to various factors such as payment schedules, outstanding royalties, or other fees.

Understanding the 'Due from franchisee' amount provides insight into the financial health and payment behavior within the Aw franchise system. A consistently low figure might suggest efficient payment collection or favorable payment terms, while a high or increasing figure could indicate potential issues with franchisee profitability or payment compliance. Therefore, a prospective franchisee should inquire about the reasons behind these fluctuations and Aw's policies for managing franchisee debt.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.