What were the stockholder distributions for All Team for the year ended December 31, 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 667,144 | $ | 787,144 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ (43,528) | $ 201,944 | |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Allowance for credit losses | 6,000 | 5,501 | |
| Changes in account balances: | |||
| Accounts receivable - trade | 479,748 | 1,387,458 | |
| Prepaid expenses | (61,295) | (16,270) | |
| Advances | (434,801) | (605,008) | |
| Due from IRS | 49,780 | (49,780) | |
| Accounts payable-trade | (882) | 3,528 | |
| Accrued expenses | (107,077) | (45,671) | |
| Other funding liabilities | 213,416 | (326,541) | |
| Total Adjustments | 144,889 | 353,217 | |
| Total Cash Provided by Operating Activities | 101,361 | 555,161 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Payments on note receivable - franchises | - | - | |
| Total Cash Provided by Investing Activities | - | - | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from credit line payable | 9,972,228 | 15,371,492 | |
| Principal payments on credit line payable | (10,433,329) | (15,758,708) | |
| Principal payment on related party note | (24,606) | (30,000) | |
| Stockholder distributions | (2,261) | (16,373) | |
| Total Cash Used in Financing Activities | (487,968) | (433,589) | |
| NET IN |
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 ended December 31, 2024, were $2,261. This information is derived from the statement of cash flows, which details the movement of cash both into and out of the company. Stockholder distributions represent cash payouts to the owners of the company, reducing the overall cash balance. For comparison, the stockholder distributions for the year ended December 31, 2023, were $16,373.
The statement of cash flows provides a summary of all cash inflows and outflows, categorized into operating, investing, and financing activities. In All Team's case, the stockholder distributions are classified as a financing activity, as they relate to the company's capital structure and payments to its owners. This is a relatively small amount compared to other cash flow activities, such as proceeds from a credit line payable of $9,972,228 and principal payments on a credit line payable of $10,433,329 for the year 2024.
Prospective franchisees should note that stockholder distributions are not necessarily indicative of the company's profitability or financial health. They simply reflect the amount of cash that was distributed to the owners during the year. A franchisee should consider the overall financial picture of All Team, including its revenues, expenses, assets, and liabilities, to assess the company's financial stability and future prospects. Reviewing the statement of operations and balance sheets, in addition to the statement of cash flows, will provide a more comprehensive understanding of All Team's financial performance.