What was the value of All Team's operating lease right-of-use assets in 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
as rent expense as the lease payments are made. As of December 31, 2023, the right-of-use asset and lease liability related to the operating lease is as follows:
For the years ended December 31, 2023 and 2022
NOTE 10 – OPERATING LEASES (Continued)
| | 2023 | 2022 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the value of the company's operating lease right-of-use assets in 2023 was $143,935. This figure represents the value of All Team's right to use leased assets, such as property or equipment, for the duration of their respective lease terms. These assets are reported on All Team's balance sheet.
The operating lease right-of-use (ROU) asset is a key component of lease accounting, reflecting the value All Team places on utilizing leased assets. The corresponding lease liability represents the company's obligation to make lease payments. Both the ROU asset and lease liability are initially recognized based on the present value of lease payments over the lease term.
For a prospective All Team franchisee, understanding the company's lease obligations and asset values can provide insight into its financial health and management of resources. Reviewing these figures over multiple years, as presented in the FDD, can reveal trends in All Team's leasing activities and its approach to managing long-term obligations. This information can be useful for assessing the financial stability of All Team.