What was the change in other funding liabilities 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, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the other funding liabilities for 2022 were $818,817. In 2023, the other funding liabilities were listed as ($326,541). This represents a significant shift in All Team's financial obligations related to other funding liabilities during this period.
For a prospective franchisee, this data highlights the volatility in All Team's funding structure. It is important to understand what "other funding liabilities" encompasses. This could include loans, deferred payments, or other financial obligations not categorized elsewhere. The large swing suggests potential changes in how All Team manages its finances or receives funding.
A potential franchisee should investigate the reasons behind this substantial change. Understanding the nature of these liabilities, the terms of any agreements, and the potential impact on All Team's financial stability is crucial. This due diligence will help assess the financial health and risk associated with investing in an All Team franchise.
It would be prudent for a prospective franchisee to seek clarification from All Team regarding the specific components of "other funding liabilities" and the factors contributing to the observed change between 2022 and 2023. Consulting with a financial advisor to interpret these financial statements is also advisable.