What was the amount of employee retention credits All Team received in 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
. For the years ended December 31, 2024 and 2023, the advances outstanding were $1,526,254 and $1,091,453, respectively.
NOTE 12 – GAIN CONTINGENCY – EMPLOYEE RETENSION CREDIT
The Company applied for financial assistance through employee retention credits under the "Coronavirus Aid, Relief, and Economic Security Act" (the "CARES ACT") in the amount of $174,999. The employee retention credits were established in March 2020 to help businesses retain employees. If certain qualifications were met, businesses could receive quarterly refunda
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company applied for employee retention credits under the CARES Act, totaling $174,999. These credits were established in March 2020 to help businesses retain employees by providing quarterly refundable payroll tax credits if certain qualifications were met. For the years ended December 31, 2023, All Team met the qualifications and received $49,780 after year end with the remaining credits pending approval.
In 2024, All Team received $49,780, with the remaining credits still pending approval. This indicates that the company's initial application for $174,999 in employee retention credits was still being processed, and the amounts received were part of this larger claim. The "Due from IRS" line item on the cash flow statement shows ($49,780) in 2023 and $49,780 in 2024.
For a prospective franchisee, this information highlights All Team's efforts to leverage available financial assistance programs. However, it's important to note that these credits are one-time benefits related to a specific economic event (the COVID-19 pandemic). Franchisees should not rely on such credits as a recurring source of income. Instead, they should focus on the core business model and its long-term financial viability.