What was the change in other funding liabilities for All Team in 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- |
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 decreased by $326,541 in 2023. In 2022, the other funding liabilities were $818,817, but in 2023, they changed to a negative value of -$326,541. This change is reflected in the cash flows from operating activities.
This fluctuation in other funding liabilities could be due to a variety of factors, such as changes in loan agreements, repayments of debts, or shifts in how All Team manages its finances. For a prospective franchisee, it's important to understand what these liabilities consist of and why they changed so significantly. This information can provide insights into the financial stability and management practices of All Team.
Understanding the nature of these liabilities and the reasons behind their changes can help a franchisee assess the financial health of All Team and make informed decisions about investing in the franchise. It would be prudent for a potential franchisee to seek clarification from All Team regarding the specifics of these 'other funding liabilities' to fully understand their implications.