What was the total current assets amount for All Team as of December 31, 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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Tampa, Florida March 24, 2025
ALL TEAM FRANCHISE CORPORATION BALANCE SHEETS
AS OF DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| CURRENT ASSETS | ||
| Cash | $ 629,272 | $ 1,015,879 |
| Accounts receivable-trade, pledged, | 589,672 | 1,075,420 |
| less credit losses of $63,416 and $57,416, respectively | ||
| Advances to related parties | 1,526,254 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company's total current assets as of December 31, 2024, were $2,826,861. This figure represents the sum of All Team's cash, accounts receivable (less credit losses), advances to related parties, prepaid expenses, and amounts due from the IRS.
For a prospective franchisee, understanding the composition and value of current assets is crucial. Current assets are those that can be readily converted into cash within a year, indicating the company's short-term financial health and liquidity. A substantial portion of All Team's current assets is tied up in "Advances to related parties," totaling $1,526,254.
This is a significant amount, and a potential franchisee should investigate the nature of these related-party transactions, their terms, and the creditworthiness of those related parties. While advances to related parties can be a legitimate business practice, they also carry the risk of non-repayment or preferential treatment, which could negatively impact the franchisor's financial stability. The other components of current assets, such as cash ($629,272) and accounts receivable ($589,672), are more typical for a business of this type. Prepaid expenses ($81,663) are also listed as part of the current assets.
Overall, while All Team's current asset position appears solid, the large balance of advances to related parties warrants further scrutiny by potential franchisees to ensure a clear understanding of the associated risks and implications for the company's financial performance.