According to All Team's 2025 Franchise Disclosure Document, the allowance for credit losses in 2024 was $6,000. This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities. In 2023, the allowance for credit losses was $5,501.

This allowance for credit losses represents All Team's estimate of the amount of accounts receivable that may not be collected. It is a contra-asset account that reduces the total amount of accounts receivable reported on the balance sheet. The increase from $5,501 in 2023 to $6,000 in 2024 suggests that All Team anticipates a slightly higher risk of uncollectible accounts receivable in 2024 compared to the previous year.

For a prospective franchisee, understanding the allowance for credit losses can provide insight into the financial health and risk management practices of All Team. While this figure relates to the franchisor's financial statements, franchisees should inquire about their own potential exposure to uncollectible accounts and the support All Team provides in managing credit risk.