What was the change in other funding liabilities 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 company's statement of cash flows shows a significant change in other funding liabilities between 2023 and 2024. In 2024, All Team reported $213,416 in other funding liabilities, whereas in 2023, the figure was ($326,541). This represents a substantial increase of $539,957 in other funding liabilities from 2023 to 2024.
This shift could indicate a change in how All Team is managing its finances. The increase in other funding liabilities might be due to new loans, deferred payments, or other financial arrangements. For a prospective franchisee, this could mean that All Team is taking on more debt or has altered its payment schedules, which could affect the company's financial stability and its ability to support franchisees.
It's important for potential franchisees to investigate the reasons behind this change. Understanding the nature of these 'other funding liabilities' and their terms is crucial. This includes knowing who the liabilities are owed to, the repayment schedule, and any associated interest rates. This information will help a franchisee assess the financial health and stability of All Team and the potential risks involved in investing in the franchise.