What was the current maturity of the operating lease liability for All Team in 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| CURRENT LIABILITIES | ||
| Accounts payable - trade | $ 2,646 | $ 3,528 |
| Due to stockholder | 14,772 | 39,378 |
| Current maturity of operating lease liability | 58,709 | 53,626 |
| Credit line payable | 859,983 | 1,321,084 |
| Accrued expenses | 124,879 | 231,956 |
| Other funding liabilities | 1,133,303 | 919,887 |
| Total Current Liabilities | 2,194,292 | 2,569,459 |
| LONG TERM LIABILITY | ||
| Operating lease liability, net of current maturity | 31,600 | 90,309 |
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 was $58,709 in 2024. This figure represents the portion of the operating lease liability that All Team was obligated to pay within the next 12 months from the end of the 2024 fiscal year. Operating leases are agreements where the risk and return of an asset do not transfer to the lessee, and All Team has such a lease in place for real estate that is set to expire in 2026.
The current maturity of operating lease liability is a short-term liability, indicating the amount of lease payments due within a year. For All Team, this means that $58,709 was due within the next year from the end of 2024. This liability is part of All Team's overall financial obligations and is listed under current liabilities on the balance sheet.
Prospective franchisees should understand the nature and extent of All Team's lease obligations, as these can impact the company's financial stability and cash flow. Reviewing the complete financial statements and related notes, including Note 10 regarding operating leases, will provide a more comprehensive understanding of these obligations. Understanding the lease terms, expiration dates, and payment schedules is crucial for assessing the financial health of All Team.