Does the note receivable from the sole stockholder of Carbones Pizzeria have set repayment terms?
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 has note receivables from its sole stockholder in the amount of $492,605. This note receivable does not have set repayment terms and is due on demand. Additionally, the note is unsecured and noninterest bearing.
This arrangement signifies a potential risk for Carbones Pizzeria. Because the note is due on demand, the stockholder could request immediate repayment, which might strain the company's finances. The absence of set repayment terms also introduces uncertainty in financial planning. The fact that the note is noninterest bearing means that the company is not accruing any income from this significant receivable, which could be seen as a missed opportunity for revenue generation.
For a prospective Carbones Pizzeria franchisee, this related-party transaction highlights the importance of carefully reviewing the company's financial statements and understanding the relationships between the company and its stakeholders. It would be prudent to inquire about the history and likelihood of the note being called in, as well as the potential impact on the company's financial stability and operations. Understanding these factors can help a franchisee assess the overall financial health and stability of Carbones Pizzeria.