According to All Team's 2025 Franchise Disclosure Document, the operating lease right-of-use (ROU) asset for 2022 was $192,816. This figure represents the value of All Team's right to use an underlying asset, such as real estate, for the duration of the operating lease term. The corresponding operating lease liability, net of current maturity, for 2022 was also $192,816.

Operating leases are a common arrangement where All Team leases property, with the risk and return of the asset not transferred to the lessee. The company adopted ASU 2016-02 on January 1, 2022, which dictates how leases are accounted for. Right-of-use assets and lease liabilities are recognized at the lease commencement date, based on the present value of lease payments over the lease term.

For a prospective All Team franchisee, understanding these figures is crucial for assessing the company's financial obligations and asset values tied to its leases. It's also important to note that All Team uses its incremental borrowing rate to calculate the present value of lease payments, as their leases do not typically provide an implicit rate. Additionally, leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as rent expense.