What were the total revenues for Aw in 2023?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| ficit) | 617 | 11,732 |
|---|
STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIT) RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues | ||||
| Franchise fee revenue | $ 8,250 | $ 8,250 | ||
| Royalties | 203,473 | 240,600 | ||
| Total Revenue | 211,723 | 248,850 | ||
| Operating Expenses | 75,326 | 80,169 | ||
| Net Income | 136,397 | 168,681 | ||
| Members' Equity (Deficit) - Begi |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the total revenues for the company in 2023 were $211,723. This revenue is comprised of franchise fee revenue totaling $8,250 and royalties amounting to $203,473. In comparison, Aw's total revenue in 2022 was $248,850, indicating a decrease in revenue from the previous year. This information is crucial for potential franchisees as it provides insight into the financial performance and revenue streams of Aw.
Understanding the composition of Aw's revenue, specifically the breakdown between franchise fees and royalties, can help a prospective franchisee assess the company's growth strategy and reliance on different income sources. A significant portion of revenue coming from royalties suggests a healthy, ongoing relationship with existing franchisees. The franchise fee revenue remaining consistent at $8,250 in both 2023 and 2022 could indicate a steady rate of new franchise establishments.
However, the decrease in total revenue from 2022 to 2023, from $248,850 to $211,723, may warrant further investigation by potential franchisees. It would be prudent to inquire about the reasons behind this decline, such as changes in market conditions, franchisee performance, or other factors. This information, combined with a thorough review of the financial statements and discussions with existing franchisees, will enable prospective franchisees to make an informed decision about investing in an Aw franchise.