What were Aw's total assets at the end of 2022?
Aw Franchise · 2025 FDDAnswer 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, the company's total assets at the end of 2022 were $86,289. This figure represents the sum of Aw's cash, amounts due from franchisees, and amounts due from related parties as of December 31, 2022.
For a prospective franchisee, understanding the franchisor's asset position can provide insights into the financial health and stability of the company. Higher asset values can indicate a stronger financial foundation, which may translate to better support and resources for franchisees. However, it is essential to consider the composition of these assets. For Aw, a significant portion of the assets is 'Due from related parties,' which totaled $51,502 in both 2022 and 2023.
'Due from related parties' refers to money owed to Aw by entities related to it, which may not be as readily available as cash. A prospective franchisee should investigate the nature of these related-party transactions and assess the creditworthiness of those related parties. Additionally, the franchisee should monitor the trend of total assets over time. Aw's total assets decreased from $86,289 in 2022 to $64,044 in 2023 and further to $59,996 in 2024. This downward trend could be a point of concern, warranting further inquiry into the reasons for the decline and its potential impact on the franchise system.