What were the principal payments on the credit line payable for All Team in 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from credit line payable | 9,972,228 | 15,371,492 | |
| Principal payments on credit line payable | (10,433,329) | (15,758,708) | |
| Principal payment on related party note | (24,606) | (30,000) | |
| Stockholder distributions | (2,261) | (16,373) | |
| Total Cash Used in Financing Activities | (487,968) | (433,589) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the principal payments on the credit line payable for the year 2024 were $(10,433,329). This indicates a significant cash outflow related to debt repayment during that year.
For a prospective All Team franchisee, this figure highlights the importance of understanding the franchisor's financial obligations and how they manage their debt. A large principal payment suggests that All Team is actively working to reduce its debt, which can be a positive sign of financial stability. However, it also means that a substantial portion of their cash flow is allocated to debt repayment rather than other potential investments or operational improvements.
It's crucial for potential franchisees to further investigate the terms of the credit line, including interest rates, repayment schedules, and any associated covenants. Understanding these details will provide a clearer picture of All Team's financial health and its ability to support its franchisees. Additionally, it would be prudent to compare these figures with previous years and industry benchmarks to assess whether the debt management practices are sustainable and in line with industry standards.