What was the value of the Members' Equity (Deficit) for Aw as of 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 Members' Equity (Deficit) as of December 31, 2023, was $617. This figure represents the ending balance of equity attributable to the members of the franchise after accounting for revenues, expenses, and distributions. It reflects the net worth of the company from the members' perspective at the end of the year.
To arrive at this ending balance, Aw started with a beginning Members' Equity (Deficit) of $11,732. During 2023, Aw experienced a net income of $136,397. However, member distributions totaled $147,512, which reduced the overall equity. The net effect of these changes resulted in the final Members' Equity (Deficit) of $617.
For a prospective Aw franchisee, this information provides insight into the financial health and equity structure of the company. A positive member equity generally indicates a stronger financial position, while a deficit could raise concerns about the company's ability to meet its obligations. Reviewing these figures over multiple years, as presented in the FDD, can help potential franchisees identify trends and assess the overall financial stability of Aw.