What were the total revenues for Aw for the year ending December 31, 2022?
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 for the year ending December 31, 2022, were $248,850. This revenue is comprised of franchise fee revenue of $8,250 and royalties totaling $240,600. These figures reflect the income Aw generated from its franchising operations during that year.
For a prospective Aw franchisee, understanding the franchisor's revenue streams is crucial. The total revenue indicates the financial health and stability of Aw. A significant portion of the revenue comes from royalties, which are typically ongoing fees paid by franchisees based on their sales. This suggests that Aw's business model relies on the success of its franchisees.
The franchise fee revenue, while smaller than the royalty revenue, represents the initial fees Aw collects from new franchisees. Monitoring these revenue components can provide insights into Aw's growth trajectory and its ability to attract new franchisees. A consistent or increasing trend in total revenue may indicate a healthy and expanding franchise system, which could be a positive sign for potential investors.
It is important to note that these revenue figures do not reflect the profitability of Aw's franchise operations. To assess profitability, one must also consider the operating expenses, which were $80,169 for the year ending December 31, 2022, resulting in a net income of $168,681. Prospective franchisees should review the complete financial statements and consult with a financial advisor to gain a comprehensive understanding of Aw's financial performance and stability.