What was the total amount due from related parties to Aw as of December 31, 2023?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
-refundable franchise fees received but not yet earned as of December 31, 2023, and 2022, were $25,500 and $33,750 respectively.
5. RELATED PARTY TRANSACTIONS
The Company from time to time provides advances to a related entity.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the total amount due from related parties to Aw as of December 31, 2023, was $51,502. The FDD also notes that the company from time to time provides advances to a related entity.
These advances are considered non-interest-bearing loans that are unsecured and due on demand. This means Aw provided funds to another entity, and that entity owes Aw $51,502 as of the end of 2023.
For a prospective franchisee, this related-party transaction indicates that Aw has financial relationships with other entities. It is important to understand the nature of these relationships and how they might impact the franchise system. While the loans are due on demand, the franchisee should consider the potential risks associated with such transactions and how they could affect Aw's financial stability and operations.