How much was due from the stockholder of Carbones Pizzeria?
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 its sole stockholder in the amount of $519,028 as of October 31, 2024. This balance has no set repayment terms, is due on demand, unsecured and noninterest bearing.
**Notes to Consoli
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 amount due to Carbones Pizzeria from its sole stockholder was $519,028. The note receivables do not have set repayment terms, are due on demand, unsecured, and noninterest bearing.
This related party transaction indicates that the stockholder has a financial relationship with Carbones Pizzeria, where they owe a significant amount of money to the company. The fact that the balance is due on demand and is non-interest bearing suggests flexible repayment terms that are favorable to the stockholder.
Prospective franchisees should consider the implications of such related-party transactions. It's important to understand how these arrangements might affect the financial stability and operations of Carbones Pizzeria. Specifically, understanding the stockholder's ability to repay this large sum and the potential impact on the company's cash flow is crucial. It would be prudent for potential franchisees to seek clarification from the franchisor regarding the nature and history of these transactions and their potential impact on the franchise system.