According to All Team's 2025 Franchise Disclosure Document, the reported value of the operating lease Right-of-Use (ROU) asset for the year 2023 was $143,935. This figure represents the company's right to use an underlying asset for the duration of the lease term. The ROU asset and lease liabilities are recognized on the date the lease commences, based on the present value of the lease payments over the lease term.

For a prospective All Team franchisee, understanding the operating lease ROU asset is crucial because it reflects the financial obligations tied to leased properties or equipment. The adoption of ASU 2016-02 (ASC 842) impacts how All Team accounts for leases, with ROU assets and lease liabilities now appearing on the balance sheet. This accounting standard ensures that leases with terms longer than 12 months are recognized, providing a more transparent view of the company's financial commitments.

The financial statements also detail how All Team handles leases. Since the leases do not typically provide an implicit rate, the company uses its incremental borrowing rate to calculate the present value of lease payments. Additionally, All Team has elected the short-term lease recognition exemption for leases with an initial term of 12 months or less, meaning these are not recorded on the balance sheet, and payments are recognized as lease expense on a straight-line basis. This approach can affect the overall financial picture presented in All Team's financial statements.

It is important for potential franchisees to review these figures in the context of All Team's overall financial health and to understand the implications of lease accounting standards. Franchisees should also inquire about the specific terms and conditions of any leases they may be required to enter into as part of their franchise agreement, to fully understand their financial obligations.