According to All Team's 2025 Franchise Disclosure Document, the allowance for credit losses in 2023 was $5,501. This figure represents an estimate of the amount of accounts receivable that All Team does not expect to collect. It is an accounting practice to recognize potential losses on accounts receivable.

The allowance for credit losses is used to reduce the book value of accounts receivable to the amount that All Team realistically expects to collect. This provides a more accurate picture of the company's financial health. The allowance is a contra-asset account, meaning it reduces the total amount of the asset (accounts receivable) reported on the balance sheet.

For a prospective All Team franchisee, this figure provides insight into the credit risk associated with the company's receivables. A higher allowance for credit losses could indicate a higher risk of non-payment from customers or franchisees. Monitoring this allowance over time can help assess the financial stability and credit management practices of All Team.