What was the change in advances for All Team in 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 667,144 | $ | 787,144 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ (43,528) | $ 201,944 | |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Allowance for credit losses | 6,000 | 5,501 | |
| Changes in account balances: | |||
| Accounts receivable - trade | 479,748 | 1,387,458 | |
| Prepaid expenses | (61,295) | (16,270) | |
| Advances | (434,801) | (605,008) | |
| Due from IRS | 49,780 | (49,780) | |
| Accounts payable-trade | (882) | 3,528 | |
| Accrued expenses | (107,077) | (45,671) | |
| Other funding liabilities | 213,416 | (326,541) | |
| Total Adjustments | 144,889 | 353,217 | |
| Total Cash Provided by Operating Activities | 101,361 | 555,161 | |
| 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 | 9,972,228 | 15,371,492 | |
| Principal payments on credit line payable | (10,433,329) | (15,758,708) | |
| Principal payment on related party note | (24,606) | (30,000) | |
| Stockholder distributions | (2,261) | (16,373) | |
| Total Cash Used in Financing Activities | (487,968) | (433,589) | |
| NET IN |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Statements of Cash Flows show a change in advances from 2023 to 2024. Specifically, the line item "Advances" within "Cash Flows From Operating Activities" details the relevant figures. In 2023, advances were listed as ($605,008), and in 2024, they were listed as ($434,801). This indicates a decrease in the amount of advances during this period.
To calculate the actual change, we subtract the 2023 amount from the 2024 amount: ($434,801) - ($605,008) = $170,207. This means that advances decreased by $170,207 from 2023 to 2024. This decrease in advances could reflect changes in how All Team manages its cash flow or its relationships with related parties.
For a prospective franchisee, this information is useful for understanding All Team's financial management practices. Advances typically represent money paid out for future goods or services, so a decrease could indicate better management of expenses or changes in operational strategies. It is important to note that the advances listed in the cash flow statement may be distinct from the advances to related parties listed on the balance sheet. A potential franchisee should seek clarification from All Team regarding the nature of these advances and their implications for the company's financial health.