How many shares of common stock are authorized for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| STOCKHOLDER'S EQUITY | ||
| Common stock - $1 par value; 30,000 shares authorized, 1,000 | ||
| shares issued, and 1,000 shares outstanding | 1,000 | 1,000 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company has authorized 30,000 shares of common stock with a par value of $1 per share, as of December 31, 2024 and 2023. Of these authorized shares, 1,000 shares were issued and outstanding during both years.
This information is relevant to potential franchisees as it provides insight into the company's equity structure. The number of authorized shares indicates the potential for All Team to issue more stock in the future, which could be used for raising capital or other corporate purposes. However, the fact that only 1,000 shares are issued and outstanding suggests that the company is closely held.
For a prospective franchisee, understanding the capitalization of All Team can be useful in assessing the financial stability and potential future direction of the company. It's important to note that the number of authorized shares does not directly impact the day-to-day operations of a franchise, but it does provide a glimpse into the company's overall financial strategy and ownership structure. Franchisees may want to inquire about All Team's plans for issuing additional shares and how that might affect the company's financial position.
It is also worth noting that the balance sheets are audited by an independent auditor, providing some assurance as to their accuracy. The balance sheets detail All Team's assets, liabilities, and equity, offering a comprehensive view of the company's financial health.