What were the total liabilities and members' equity (deficit) for Aw as of December 31, 2024?

According to Aw's 2025 Franchise Disclosure Document, the total liabilities and members' equity (deficit) as of December 31, 2024, was $59,996. For comparison, the total liabilities and members' equity (deficit) as of December 31, 2023, was $64,044. This figure represents the sum of all the company's obligations to creditors and the value of the ownership stake held by its members. A prospective franchisee should carefully examine the components of liabilities and equity to understand the financial structure of Aw.

Liabilities include items such as loans payable to the SBA ($532 current and $28,382 long term) and WinTrust ($10,073), and contract liabilities ($6,875 current and $10,625 long term). Members' equity (deficit) represents the residual value of the company after deducting liabilities from assets; for 2024, this was $3,509. Understanding the breakdown between current and long-term liabilities can provide insights into Aw's short-term and long-term financial obligations.

It is important to note that members' equity can be either a positive value (equity) or a negative value (deficit), depending on whether the company's assets exceed its liabilities. In Aw's case, the members' equity was $3,509 as of December 31, 2024, indicating that assets exceeded liabilities. Reviewing these figures over multiple years, as presented in the FDD, helps to identify trends and assess the financial stability of the franchise system. A potential franchisee should consult with a financial advisor to fully understand the implications of these financial statements.