What was the current maturity of the operating lease liability for All Team in 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ht-of-use asset and lease liability related to the operating lease is as follows:
For the years ended December 31, 2024 and 2023
NOTE 10 – OPERATING LEASES (Continued)
| 2024 | 2023 | |
|---|---|---|
| Operating lease ROU asset | $90,309 | $143,935 |
| Operating lease l |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the current maturity of the operating lease liability in 2023 was $53,626. This figure represents the portion of the operating lease liability that All Team was obligated to pay within the next 12 months from the balance sheet date.
For a prospective All Team franchisee, understanding the current maturity of operating lease liabilities is crucial because it reflects the short-term financial obligations related to leased assets, typically real estate. This liability is part of the overall financial health assessment, indicating the company's ability to meet its immediate lease commitments. The FDD also notes that All Team has an operating lease for real estate that expires in 2026.
Furthermore, the FDD states that All Team also engages in other operating leases with terms less than 12 months, which are not recorded on the balance sheet. Instead, these payments are recognized as rent expense as they are made. This means that in addition to the current maturity of the operating lease liability, franchisees should also consider the ongoing rent expenses associated with shorter-term leases when evaluating the overall cost of operations.