How much was due from the stockholder, as reported 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 represents money owed to Carbones Pizzeria by its stockholder. The note has no set repayment schedule, is due on demand, is unsecured, and does not bear interest. This arrangement means that the company can request repayment of the $492,605 at any time, but there are no fixed terms for when or how the stockholder must repay the amount.
For a prospective franchisee, this related-party transaction highlights the financial relationship between Carbones Pizzeria and its stockholder. While not inherently negative, it's essential to understand the implications of such transactions. A significant amount due from a stockholder could affect the company's financial flexibility and ability to meet its obligations.
It would be prudent for a potential franchisee to inquire about the history of these transactions, the stockholder's repayment capacity, and the potential impact on the franchise system's financial stability. Understanding these factors can help a franchisee assess the financial health and stability of Carbones Pizzeria.