How much did All Team have in advances to related parties as of December 31, 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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Tampa, Florida March 24, 2025
ALL TEAM FRANCHISE CORPORATION BALANCE SHEETS
AS OF DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| CURRENT ASSETS | ||
| Cash | $ 629,272 | $ 1,015,879 |
| Accounts receivable-trade, pledged, | 589,672 | 1,075,420 |
| less credit losses of $63,416 and $57,416, respectively | ||
| Advances to related parties | 1,526,254 | 1,091,453 |
| Prepaid expenses | 81,663 | 20,368 |
| Due from IRS | - | 49,780 |
| Total Current Assets | 2,826,861 | 3,252,900 |
| PROPERTY AND EQUIPMENT, net | - | - |
| OTHER ASSETS | ||
| Operating lease right-of-use assets | 90,309 | 143,935 |
| Deposits | 34,537 | 34,537 |
| Int |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, as of December 31, 2023, the company had $1,091,453 in advances to related parties. These advances are categorized as current assets on the balance sheet.
According to Note 11 in the FDD, these advances represent working capital provided to companies owned primarily by the stockholder. These advances are made under formal agreements that include interest on the unpaid balance. Repayments are made as these related companies have excess cash, and there are no specific repayment terms.
For a prospective All Team franchisee, this indicates that a significant portion of All Team's assets is tied up in loans to related parties. While these advances are interest-bearing, the lack of specific repayment terms introduces a degree of uncertainty regarding when and how All Team will recover these funds. This could potentially impact All Team's financial flexibility and its ability to invest in supporting its franchisees.
It is important to note that the advances to related parties increased from $1,091,453 in 2023 to $1,526,254 in 2024. A prospective franchisee should consider the implications of these related-party transactions and how they might affect the overall financial health and stability of All Team.