What is the par value of Carbones Pizzeria's common stock?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
cant audit findings, and certain internal control related matters that we identified during the audit.
Sherman Oaks, California March 20, 2023
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Consolidated Balance Sheet October 31, 2022
ASSETS
| Cash and equivalents | $ 102,916 |
|---|---|
| Accounts receivable, net | 232,832 |
| Due from stockholder | 474,805 |
| Accounts receivable-related party | 45,140 |
| Inventory | 3,650 |
| Prepaid expenses | 24,490 |
| Prepaid income taxes | 4,516 |
| Total current assets | 888,349 |
| Property and equipment, net | |
| Furniture and equipment | 285,008 |
| Land and building improvements | 102,667 387,675 |
| Less accumulated depreciation and amortization | (295,899) 91,776 |
| Note receivable | 60,500 |
| Total assets | $ 1,040,625 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |
| Current liabilities | |
| Accrued expenses | $ 18,566 |
| Accrued income taxes | 80,509 |
| Total current liabilities | 99,075 |
| Stockholder's equity | |
| Common stock - $1.00 par value; authorized, 25,000 shares; |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's common stock has a par value of $1.00. As of the balance sheet ending October 31, 2023, Carbones Pizzeria had 2,500 shares issued and outstanding. This common stock is part of the total stockholder's equity, which also includes additional paid-in capital of $266,117, retained earnings of $707,489, and treasury stock at cost of ($34,556), resulting in a total stockholder's equity of $941,550.
The par value of a stock is the nominal value assigned to a share of stock when it is first issued by the company. It is the minimum price at which the company can issue shares. However, the market value of the stock, which is what investors are willing to pay for it, can be significantly higher or lower than the par value. In the case of Carbones Pizzeria, the par value is a relatively small component of the overall stockholder's equity.
For a prospective franchisee, understanding the par value of the common stock may not have a direct impact on their day-to-day operations. However, it provides insight into the company's capitalization and equity structure. It's more relevant to investors and shareholders who are concerned with the financial health and structure of the company. The franchisee might want to further investigate the total shares authorized to understand the potential for dilution of equity in the future.