What was the amount receivable by Crepe De Licious from its sole shareholder as of December 31, 2023?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
declaring bankruptcy. The Company believes this to be a one-time event and does not anticipate this situation to occur in future years.
4. Related Party Transactions
During 2024 and 2023, some of the Company's expenses were paid by Crepe Delicious Holdings Corporation Ca
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, as of December 31, 2023, the amount receivable from its sole shareholder was $59,831. The disclosure specifies that this amount does not have a stated interest rate, is unsecured, and has no set repayment terms.
This related party transaction indicates that Crepe De Licious had extended credit to its sole shareholder. The absence of a stated interest rate and set repayment terms could be seen as a risk factor. If the shareholder were unable to repay the amount, it could negatively impact the financial position of Crepe De Licious.
Prospective franchisees should consider the implications of such related-party transactions. It would be prudent to inquire about the shareholder's repayment history and the company's policies regarding such transactions to assess the potential financial risks. Understanding the financial stability of the parent company and its dealings with related parties is crucial for making an informed investment decision.