What was the amount due from stockholder for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
torical levels of taxable income, expectations, and risks associated with estimates of future taxable income, and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance.
As of October 31, 2023, the Company's returns are subject to examination by federal and state taxing authorities, generally for three years and four years, respectively, after they are filed.
3. Related Party Transactions
Due from stockholder
The Company has note receivables from its sole stockholder in the amount of $492,605 as of October 31, 2023. This balance has
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, as of October 31, 2023, the company had notes receivable from its sole stockholder amounting to $492,605. This balance is characterized by having no set repayment terms, being due on demand, unsecured, and noninterest bearing.
This related party transaction indicates the financial relationship between Carbones Pizzeria and its stockholder. The fact that the note receivable is due on demand and noninterest bearing could suggest flexibility in the financial arrangements between the company and its stockholder. However, it also introduces a degree of uncertainty, as the stockholder could demand repayment at any time.
For a prospective franchisee, this information highlights the importance of understanding the financial structure and related-party transactions of Carbones Pizzeria. While the presence of such transactions is not inherently negative, it warrants careful consideration and due diligence to assess any potential impact on the stability and operations of the franchise system. It would be prudent to inquire about the history and purpose of these transactions, as well as the stockholder's long-term commitment to the company.