What was the total stockholder's equity for All Team in 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | 1,091,453 |
| Prepaid expenses | 81,663 | 20,368 |
| Due from IRS | - | 49,780 |
| Total Current Assets | 2,826,861 | 3,252,900 |
| PROPERTY AND EQUIPMENT, net | - | - |
| OTHER ASSETS | ||
| Operating lease right-of-use assets | 90,309 | 143,935 |
| Deposits | 34,537 | 34,537 |
| Intangible assets | 61,329 | 61,329 |
| Total Other Assets | 186,175 | 239,801 |
| TOTAL ASSETS | $ 3,013,036 | $ 3,492,701 |
| CURRENT LIABILITIES | ||
| Accounts payable - trade | $ 2,646 | $ 3,528 |
| Due to stockholder | 14,772 | 39,378 |
| Current maturity of operating lease liability | 58,709 | 53,626 |
| Credit line payable | 859,983 | 1,321,084 |
| Accrued expenses | 124,879 | 231,956 |
| Other funding liabilities | 1,133,303 | 919,887 |
| Total Current Liabilities | 2,194,292 | 2,569,459 |
| LONG TERM LIABILITY | ||
| Operating lease liability, net of current maturity | 31,600 | 90,309 |
| Total Long-Term Liability | 31,600 | 90,309 |
| Total Liabilities | 2,225,892 | 2,659,768 |
| STOCKHOLDER'S EQUITY | ||
| Common stock - $1 par value; 30,000 shares authorized, 1,000 | ||
| shares issued, and 1,000 shares outstanding | 1,000 | 1,000 |
| Additional paid in capital | 119,000 | 119,000 |
| Retained earnings | 667,144 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the total stockholder's equity for the company in 2023 was $832,933. This figure represents the sum of common stock, additional paid-in capital, and retained earnings. The common stock was valued at $1,000, with 1,000 shares issued and outstanding, and a par value of $1 per share. Additional paid-in capital amounted to $119,000, while retained earnings totaled $712,933.
Stockholder's equity is a crucial metric for prospective franchisees as it reflects the net worth of All Team. A higher stockholder's equity generally indicates a more financially stable and established company. This can provide reassurance to franchisees about the franchisor's ability to support their operations and invest in the brand's future growth. Conversely, a low or negative stockholder's equity might raise concerns about the franchisor's financial health and its capacity to fulfill its obligations.
In All Team's case, the stockholder's equity increased from $647,362 in 2022 to $832,933 in 2023, indicating positive financial performance and growth in retained earnings. This increase suggests that All Team was profitable and managed its finances effectively during that period. Franchisees may view this trend as a positive sign, suggesting that the company is well-positioned for continued success.
It is important for potential franchisees to analyze the components of stockholder's equity and compare them to industry benchmarks. While a healthy stockholder's equity is desirable, franchisees should also consider other financial metrics, such as revenue, profitability, and debt levels, to gain a comprehensive understanding of All Team's financial condition. Consulting with a financial advisor can help prospective franchisees assess the financial risks and opportunities associated with investing in an All Team franchise.