What was the change in advances for All Team in 2022?
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 advances in 2022 were listed as a negative value of $169,476. In 2023, the advances were listed as a negative value of $605,008. This indicates the business provided advances and the figures represent a cash outflow.
The change in advances from 2022 to 2023 can be calculated by subtracting the 2022 value from the 2023 value. In this case, -$605,008 less -$169,476 equals -$435,532. This means that All Team's advances increased by $435,532 from 2022 to 2023.
Prospective franchisees should understand how All Team manages its cash flow and the implications of these advances. It would be prudent to inquire with All Team about the nature of these advances, to whom they are provided, and the terms of repayment to fully understand their impact on the company's financial health.