table_specific

What was the amount of advances to related parties for All Team as of December 31, 2024?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

| Lease liability recognized | $90,309 | The following rent expense is associated with this operating lease:

Fixed rent expense $72,893

NOTE 11 – RELATED PARTY TRANSACTIONS

The Company advances working capital to companies owned primarily by the stockholder under formal agreements that include interest on the unpaid balance. There are no specific repayment ter

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, the advances to related parties as of December 31, 2024, were $1,526,254. These advances represent working capital provided by All Team to companies owned primarily by the stockholder. These advances are formalized through agreements that include interest on the unpaid balance.

Notably, the repayment terms for these advances are not specifically defined. Payments are made as the related companies have excess cash available. This arrangement means that the repayment of these advances is contingent on the financial performance and cash flow of these related companies, which introduces a degree of uncertainty regarding when and how All Team will recover these funds.

For a prospective franchisee, this related-party transaction is important for assessing the financial health and stability of All Team. While such transactions are not inherently problematic, their nature and magnitude require careful consideration. Franchisees should seek clarification from All Team regarding the details of these related-party transactions, including the interest rates, the financial performance of the related companies, and the potential impact on All Team's financial condition. Understanding these aspects will help franchisees evaluate the financial risks and opportunities associated with investing in an All Team franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.