What is the nature of the 'Other funding liabilities' account for All Team?

According to All Team's 2025 Franchise Disclosure Document, the balance sheets include a line item for 'Other funding liabilities' under current liabilities. In 2024, this amounted to $1,133,303, while in 2023, it was $919,887. This indicates the presence of short-term financial obligations beyond typical accounts payable, debts to stockholders, lease liabilities, credit lines, and accrued expenses.

For a prospective All Team franchisee, the 'Other funding liabilities' line item suggests that All Team relies on various sources of short-term funding to manage its operations. The increase in this liability from 2023 to 2024 could signal a growing need for external financing or changes in how the company manages its short-term obligations. Understanding the specifics of these liabilities is crucial for assessing the financial stability and operational practices of All Team.

It is important to note that the FDD does not provide a detailed breakdown of what constitutes 'Other funding liabilities.' A potential franchisee should seek clarification from All Team regarding the nature of these liabilities. Specifically, they should inquire about the types of funding sources included, the terms and conditions associated with these liabilities (such as interest rates and repayment schedules), and any potential risks these liabilities pose to the financial health of the company. This due diligence will help in making an informed decision about investing in an All Team franchise.