What were the total royalties for Aw for the year ending December 31, 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 royalties for the year ending December 31, 2023, were $203,473. This figure is part of Aw's overall revenue, which totaled $211,723 for the same period. Franchise fee revenue contributed $8,250 to the total revenue for 2023.
For a prospective Aw franchisee, understanding the royalty figures is crucial as it represents a significant ongoing cost. The royalty payments contribute to Aw's revenue stream, which is used to support the franchise system. These payments fund services such as brand marketing, operational support, and ongoing training.
It's also important to note the trend in Aw's royalty revenue. While the royalties for 2023 were $203,473, the royalties for the year ending December 31, 2022, were $240,600. This represents a decrease in royalty income for Aw. A potential franchisee should investigate the reasons for this decrease and how it might affect the support and services Aw can provide.
Reviewing the complete financial statements and discussing these figures with Aw can provide a clearer picture of the franchise's financial health and stability. Understanding the factors that influence royalty revenue can help a franchisee assess the potential risks and rewards of investing in an Aw franchise.