What were the proceeds from the credit line payable for All Team in 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 667,144 | $ | 787,144 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ (43,528) | $ 201,944 | |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Allowance for credit losses | 6,000 | 5,501 | |
| Changes in account balances: | |||
| Accounts receivable - trade | 479,748 | 1,387,458 | |
| Prepaid expenses | (61,295) | (16,270) | |
| Advances | (434,801) | (605,008) | |
| Due from IRS | 49,780 | (49,780) | |
| Accounts payable-trade | (882) | 3,528 | |
| Accrued expenses | (107,077) | (45,671) | |
| Other funding liabilities | 213,416 | (326,541) | |
| Total Adjustments | 144,889 | 353,217 | |
| Total Cash Provided by Operating Activities | 101,361 | 555,161 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Payments on note receivable - franchises | - | - | |
| Total Cash Provided by Investing Activities | - | - | |
| 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) | |
| NET IN |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the proceeds from the credit line payable in 2023 were $15,371,492. This figure is part of the cash flow statement, specifically under cash flows from financing activities. This indicates the amount of money All Team received from its credit line during that year.
For a prospective franchisee, this information provides insight into how All Team manages its finances and utilizes credit. A significant increase or decrease in credit line proceeds from year to year could signal changes in the company's financial strategy or health. It's important to note that while proceeds indicate incoming funds, the financial statement also shows principal payments on the credit line, which were $(15,758,708) in 2023. This means that All Team paid back more than it borrowed from the credit line during that year.
Analyzing these figures in conjunction with other financial data, such as net income and operating cash flow, can provide a more comprehensive understanding of All Team's financial stability. Franchisees should consider these trends and ask All Team about their plans for managing debt and utilizing credit lines in the future. Understanding the franchisor's financial strategy is crucial for assessing the overall risk and potential success of the franchise investment.