How much was due from the stockholder for 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 Consolidated Financial Statements For the Year Ended October 31, 2024
3. Related Party Transactions (Continued)
Operating Lease
The Company leases a facility from a limited liability company which is owned by the stockholder of the Company (See Note 4).
4. Commitments and Contingencies
Legal
From time to time, the Company is party to legal actions arising out of the ordinary course of business. The Co
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 FDD, as of October 31, 2024, Carbone's Pizzeria had note receivables from its sole stockholder amounting to $519,028. The FDD also states that as of October 31, 2023, the company had note receivables from its sole stockholder in the amount of $492,605.
These balances have no set repayment terms, are due on demand, unsecured, and non-interest bearing. This arrangement means that Carbone's Pizzeria can request repayment from the stockholder at any time, but there is no fixed schedule for when the money must be repaid. The absence of interest means the company will not receive any additional income from these receivables beyond the principal amount.
As a prospective franchisee, it's important to understand the financial relationship between Carbones Pizzeria and its stockholder. Related party transactions can sometimes create conflicts of interest or affect the company's financial stability. While the FDD discloses these transactions, a franchisee may want to inquire about the history and purpose of these notes, as well as the stockholder's ability to repay the amounts due.