What was the cash balance at the beginning of the year for All Team on December 31, 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
(16,373) | | (16,373) | | Balance at December 31, 2023 | $ 1,000 | $ 119,000 | $ | 712,933 | $ | 832,933 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 2022 | ||
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $ 201,944 | $ 224,177 |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Allowance for credit losses | 5,501 | 6,000 |
| Changes in account balances: | ||
| Accounts receivable - trade | 1,387,458 | 34,529 |
| Prepaid expenses | (16,270) | 35 |
| Advances | (605,008) | (169,476) |
| Due from IRS | (49,780) | |
| Accounts payable-trade | 3,528 | - |
| Accrued expenses | (45,671) | 51,228 |
| Other funding liabilities | (326,541) | 818,817 |
| Total Adjustments | 353,217 | 741,133 |
| Total Cash Provided by Operating Activities | 555,161 | 965,310 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Payments on note receivable - franchises | - | - |
| Total Cash Provided by Investing Activities | - | - |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from credit line payable | 15,371,492 | 21,942,195 |
| Principal payments on credit line payable | (15,758,708) | (22,540,407) |
| Principal payment on related party note | (30,000) | - |
| Stockholder distributions | (16,373) | (8,392) |
| Total Cash Used in Financing Activities | (433,589) | (606,604) |
| NET INCREASE IN CASH | 121,572 | 358,706 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the cash balance at the beginning of the year, specifically on December 31, 2023, was $894,307. This figure represents the amount of cash All Team had on hand as it entered the 2023 fiscal year. This information is derived from the Statements of Cash Flows, which detail the movement of cash both into and out of the company during the reported periods. Note that the beginning of year cash balance for 2023 is equivalent to the end of year cash balance for 2022.
For a prospective franchisee, understanding the franchisor's cash flow and cash balance is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. It indicates All Team's capacity to invest in ongoing support, training, and development of the franchise system. It also reflects the company's ability to manage its financial obligations and weather potential economic downturns.
However, it's important to consider this figure in conjunction with other financial metrics. Reviewing All Team's statements of cash flows in their entirety, including cash flows from operating, investing, and financing activities, provides a more comprehensive picture. Analyzing trends over multiple years offers further insight into the company's financial health and its ability to sustain growth. Prospective franchisees should also inquire about any factors that may have significantly impacted All Team's cash balance in recent years or that may affect it in the future.
It is also important to note that these are the financials for the franchisor, All Team, and not necessarily reflective of the performance of individual franchisees. While the financial health of the franchisor is an important consideration, prospective franchisees should also seek to understand the typical financial performance of existing franchise locations.