What is included in 'Stockholder distributions' for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
r Income (Expenses) | 559,855 | 313,671 | | NET INCOME | $ 201,944 | $ 224,177 |
ALL TEAM FRANCHISE CORPORATION STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| Balance at December 31, 2021 | $ 1,000 | $ 119,000 | $ | 311,577 | $ | 431,577 |
|---|---|---|---|---|---|---|
| Net income | 224,177 | 224,177 | ||||
| Stockholder distributions | (8,392) | (8,392) | ||||
| Balance at December 31, 2022 | 1,000 | 119,000 | 527,362 | 647,362 | ||
| Net income | 201,944 | 201,944 | ||||
| Stockholder distributions | (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-trade | 3,528 | - |
| Accrued expenses |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the stockholder distributions are listed as subtractions from the balance of stockholder's equity. For the year ending December 31, 2022, stockholder distributions totaled $(8,392). For the year ending December 31, 2023, stockholder distributions totaled $(16,373). Finally, for the year ending December 31, 2024, stockholder distributions totaled $(2,261).
These distributions represent payments made to the owners or shareholders of All Team from the company's retained earnings. These payments decrease the amount of equity held within the company. Potential franchisees should consider these distributions as part of their overall assessment of the company's financial health and profitability.
It is important to note that the FDD does not specify the exact nature of these stockholder distributions. A prospective franchisee should seek clarification from All Team regarding the specific purpose and frequency of these distributions to fully understand their impact on the company's financials. Understanding these details can provide a clearer picture of how profits are allocated and the long-term financial strategy of the company.