What were the total 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 company's total current liabilities as of December 31, 2023, were $18,586. This figure represents the sum of several short-term financial obligations, including $513 in Loan payable SBA, $10,073 in Loan payable WinTrust, and $8,000 in Contract Liability.
Current liabilities are a critical measure of a company's short-term financial health. They indicate the amount of money Aw owes to creditors within one year. These liabilities are distinct from long-term liabilities, which extend beyond a year and reflect longer-term debt and obligations.
For a prospective Aw franchisee, understanding the franchisor's current liabilities is essential for assessing the financial stability of the franchise system. A high level of current liabilities relative to current assets could indicate potential financial strain, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of current liabilities suggests that Aw is in good financial standing and capable of meeting its short-term obligations.
It is important to note that these figures are based on Aw's financial statements and may not reflect the financial performance of individual franchise locations. Potential franchisees should conduct their own due diligence and consult with a financial advisor to fully understand the financial implications of investing in an Aw franchise.