What was the reported value of Crepe De Licious's shareholder receivable in 2023?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
rtfolio segment and the related activity are as follows:
| Deferred income tax asset | $ 7,800 | | $ 9,300 | |---|---|---|---| | Deferred income tax liability | (500) | (7,300) | | | Total net deferred income tax asset | $ 7,300 | | $ 2,000 | In 2023, there was a significant
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the amount receivable from its sole shareholder at December 31, 2023, was $59,831. This receivable is notable because it does not have a stated interest rate, is unsecured, and has no set repayment terms.
For a prospective franchisee, this related-party transaction highlights the importance of understanding the financial relationships between Crepe De Licious and its affiliates or shareholders. The fact that the shareholder receivable is unsecured and lacks specific repayment terms could indicate a potential risk, as the company's ability to recover this amount is uncertain.
It is advisable for potential franchisees to inquire about the history of these related-party transactions, the nature of the relationship with the shareholder, and the company's policies for managing such receivables. Understanding the details of these transactions can provide a clearer picture of the company's financial stability and risk management practices.