What was the total value of current liabilities for Aw as of December 31, 2023?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
during the audit.
Muhammad Zubairy, CPA PC Westbury, NY June 6, 2024
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 S |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the total current liabilities as of December 31, 2023, were $18,586. This figure represents the sum of several short-term financial obligations, including a loan payable to the SBA of $513, a loan payable to WinTrust of $10,073, and contract liabilities of $8,000. These liabilities are considered current because they are due within one year.
Understanding the composition of these current liabilities is crucial for prospective franchisees. The loan payable to SBA and WinTrust indicate Aw's debt obligations, while the contract liability likely relates to deferred revenue from franchise fees or other services. A high level of current liabilities relative to current assets could indicate potential liquidity issues, meaning Aw might face challenges in meeting its short-term obligations.
Franchisees should assess Aw's ability to manage its debts and ensure that the franchisor has a healthy financial standing. Reviewing the trend of current liabilities over time, as well as comparing them to industry benchmarks, can provide additional insights. Furthermore, it is advisable to discuss with Aw the specifics of these liabilities and their potential impact on the franchisor's operations and support for franchisees.
It is also important to note that the FDD includes financial statements audited by Muhammad Zubairy, CPA PC, which provides an independent opinion on the fairness of Aw's financial presentation. This audit adds a layer of credibility to the reported figures, but franchisees should still conduct their own due diligence to fully understand the financial health of Aw.