What statements are included in the audited financial statements for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the accompanying financial statements of All Team Franchise Corporation (a Florida corporation) which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of All Team Franchise Corporation as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Fixed rent expense $72,893
NOTE 11 – RELATED PARTY TRANSACTIONS
The Company advances working capital to companies owned primarily by the stockholder under formal agreements that include interest on the unpaid balance. There are no specific repayment terms and payments are made as the companies have excess cash. For the years ended December 31, 2024 and 2023, the advances outstanding were $1,526,254 and $1,091,453, respectively.
NOTE 12 – GAIN CONTINGENCY – EMPLOYEE RETENSION CREDIT
The Company applied for financial assistance through employee retention credits under the "Coronavirus Aid, Relief, and Economic Security Act" (the "CARES ACT") in the amount of $174,999. The employee retention credits were established in March 2020 to help businesses retain employees. If certain qualifications were met, businesses could receive quarterly refundable payroll tax credits. The Company met the qualifications and received $49,780 in 2024 with the remaining credits pending approval. For the years ended December 31, 2024 and 2023
NOTE 13 - DATE OF MANAGEMENT'S REVIEW
Management evaluates events occurring subsequent to the date of the financial statements in determining the accounting for and disclosure of transactions and events that affect the financial statements. Subsequent events have been evaluated through March 24, 2025, which is the date the financial statements were available to be issued.
NOTE 5 – INCOME TAXES
Income taxes for federal purposes have not been provided because the shareholder elected to be treated as an S Corporation for income tax purposes as provided in Section 1362(a) of the Internal Revenue Code. As such, the Company's income is included in the shareholder's individual income tax return.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the audited financial statements include several key components. Specifically, the financial statements comprise balance sheets as of December 31, 2024 and 2023, along with related statements of operations, changes in stockholders' equity, and cash flows for the years then ended. The audit is conducted to provide reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error.\n\nThe independent auditor's report expresses an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of All Team in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of these financial statements, including the design, implementation, and maintenance of internal control. The auditor's responsibilities include assessing the risks of material misstatement and evaluating the appropriateness of accounting policies used.\n\nFurthermore, the financial statements include notes that provide additional information and disclosures. For example, Note 11 discusses related party transactions, noting that All Team advanced working capital to companies owned primarily by the stockholder, with outstanding advances of $1,526,254 and $1,091,453 for the years ended December 31, 2024 and 2023, respectively. Note 12 mentions a gain contingency related to employee retention credits, where All Team applied for financial assistance and received $49,780 in 2024, with remaining credits pending approval. Note 5 clarifies that income taxes for federal purposes are not provided because the shareholder elected to be treated as an S Corporation.\n\nFinally, Note 13 indicates that management evaluated subsequent events through March 24, 2025, which is the date the financial statements were available to be issued. These audited financial statements, along with the accompanying notes, are crucial for prospective franchisees to assess the financial health and stability of All Team. Reviewing these statements can help potential franchisees understand the franchisor's financial performance, related party transactions, and any potential risks or contingencies.