Does the note receivable from the Carbones Pizzeria stockholder bear interest?
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 the 2025 Carbones Pizzeria Franchise Disclosure Document, the note receivable from its sole stockholder does not bear interest. As of October 31, 2023, the company had a note receivable from its sole stockholder amounting to $492,605.
This note has no set repayment terms and is due on demand. Additionally, the note is unsecured, meaning there is no collateral backing the loan, and it is noninterest bearing, meaning the company is not charging the stockholder interest on the outstanding balance.
For a prospective Carbones Pizzeria franchisee, this related party transaction highlights the financial relationship between the company and its stockholder. While this specific transaction may not directly impact franchisees, it's important to understand the financial dealings of the company, as it can provide insights into the overall financial health and management practices of the franchisor. Franchisees should consider this information as part of their due diligence process to assess the stability and transparency of Carbones Pizzeria.