Is the balance of $475,000 that the sole stockholder owes Carbones Pizzeria secured or unsecured?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
sks 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, 2024, 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
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, 2024, the company's sole stockholder owed the company $519,028. The FDD states that this balance has no set repayment terms, is due on demand, and is noninterest bearing.
Specifically, the disclosure indicates that the amount due from the stockholder is unsecured. This means that Carbones Pizzeria does not have a legal claim to any specific assets of the stockholder as collateral for the debt. If the stockholder defaults on this obligation, Carbones Pizzeria would be considered a general creditor, without priority over other creditors who may have secured claims.
Prospective franchisees should be aware of related-party transactions like this, as they can present potential conflicts of interest or financial risks. It is advisable to inquire about the history of such transactions, the stockholder's repayment plans (if any), and the potential impact on the financial stability of Carbones Pizzeria.