What was the total cash provided by operating activities for All Team in 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 total cash provided by operating activities in 2024 was $101,361. This figure reflects the net cash flow generated from the company's core business operations during that year. In comparison, the total cash provided by operating activities in 2023 was $555,161, indicating a significant decrease in cash flow from operations year over year. This difference could be due to various factors, such as changes in net income, adjustments for non-cash items, or fluctuations in account balances.
For a prospective All Team franchisee, this information is crucial for understanding the financial health and operational efficiency of the company. Positive cash flow from operating activities generally indicates that the company is generating enough cash from its core business to cover its operating expenses and invest in future growth. However, a decrease in cash flow, as seen from 2023 to 2024, may raise concerns about the company's ability to sustain its operations and meet its financial obligations.
It's important to note that net income for 2024 was a loss of $(43,528) compared to a net income of $201,944 in 2023. This shift from profit to loss, along with changes in other account balances, contributed to the lower cash flow from operating activities in 2024. Prospective franchisees should investigate the reasons behind these changes and assess the potential impact on their own franchise operations. Understanding these trends can help franchisees make informed decisions about their investment and operational strategies.
Overall, while All Team generated positive cash flow from operating activities in 2024, the significant decrease compared to the previous year warrants further scrutiny. Potential franchisees should carefully analyze the company's financial statements and seek clarification from the franchisor regarding the factors that influenced these changes. This due diligence will help them evaluate the financial stability and growth potential of the All Team franchise system.