What was the due from stockholder amount 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.
For a prospective franchisee, this related party transaction reveals financial interactions between Carbones Pizzeria and its stockholder. The "due from stockholder" amount represents money owed to the company by its stockholder. The fact that the balance has no set repayment terms and is due on demand suggests a flexible arrangement, but also one that could change at any time depending on the company's or the stockholder's financial needs.
The fact that the note is unsecured means that Carbones Pizzeria does not have a claim on any specific assets of the stockholder in case of default, increasing the risk of non-payment. Additionally, the note being noninterest bearing means that the company is not earning any interest income on this amount, which could be seen as a missed opportunity to generate revenue.
Prospective franchisees should consider the implications of such related-party transactions on the financial stability and management practices of Carbones Pizzeria. It would be prudent to inquire about the history and rationale behind this arrangement, as well as the stockholder's financial capacity to repay the amount due, to fully understand the potential risks and benefits.