What were the stockholder distributions for All Team at the end of December 31, 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ALL TEAM FRANCHISE CORPORATION STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| Balance at December 31, 2022 | $ 1,000 | $ 119,000 | $ | 527,362 | $ | 647,362 |
|---|---|---|---|---|---|---|
| Net income | 201,944 | 201,944 | ||||
| Stockholder distributions | (16,373) | (16,373) | ||||
| Balance at December 31, 2023 | 1,000 | 119,000 | 712,933 | 832,933 | ||
| Net income (loss) | (43,528) | (43,528) | ||||
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 at the end of December 31, 2023, were $16,373. This means that All Team distributed $16,373 to its stockholders during the year. These distributions are a return of capital to the owners of the company.
For a prospective franchisee, this indicates how All Team manages its finances and distributes profits. Consistent stockholder distributions could be seen as a positive sign, suggesting the company is profitable and stable enough to return capital to its owners. However, it is important to consider the size of the distributions relative to the company's net income and overall financial health.
It is also important to note that in 2024, the stockholder distributions were $2,261. A significant decrease in stockholder distributions from 2023 to 2024, along with a net loss of $43,528 in 2024, could signal potential financial challenges or a change in the company's financial strategy. A prospective franchisee should investigate the reasons for these changes and their potential impact on the franchise system.
Franchisees should review the complete financial statements and consult with a financial advisor to fully understand the implications of these distributions and All Team's overall financial performance. Understanding the franchisor's financial health is a crucial part of the due diligence process before investing in a franchise.