What were the stockholder distributions for All Team in 2022?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
r Income (Expenses) | 559,855 | 313,671 | | NET INCOME | $ 201,944 | $ 224,177 |
ALL TEAM FRANCHISE CORPORATION STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| Balance at December 31, 2021 | $ 1,000 | $ 119,000 | $ | 311,577 | $ | 431,577 |
|---|---|---|---|---|---|---|
| Net income | 224,177 | 224,177 | ||||
| Stockholder distributions | (8,392) | (8,392) | ||||
| Balance at December 31, 2022 | 1,000 | 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the stockholder distributions for the year ending December 31, 2022, were $8,392. This figure represents the amount of money distributed to the stockholders of All Team during that year. This distribution impacts the retained earnings, as it lowers the balance.
Specifically, the table outlines the changes in stockholder's equity from December 31, 2021, to December 31, 2022. The stockholder distributions are deducted from the net income to arrive at the ending balance of stockholder's equity for the year. The beginning balance at December 31, 2021 was $431,577, net income was $224,177, and stockholder distributions were ($8,392), resulting in a balance of $647,362 at December 31, 2022.
For a prospective franchisee, understanding stockholder distributions can provide insight into how All Team manages its finances and allocates profits. While distributions are a normal part of business, significant or inconsistent distributions could signal financial strategies that franchisees may want to further investigate. It is important to consider these distributions in the context of overall financial performance and consult with a financial advisor to understand the implications for the franchise system's long-term stability.