| LOANS RECEIVABLE FROM FRANCHISEES, NET |
NOTE 5 — LOANS RECEIVABLE FROM FRANCHISEES,
NET
Loans receivables from franchisees
consist of non-interest-bearing advances provided by the Company to its franchisees to purchase inventory, equipment; or for use as working
capital. The maturity date of the loan is 180 days from the date of disbursement of funds.
As of April 30, 2025 and
October 31, 2024, loan receivables from franchisees, net comprised of the following:
| | |
April 30,
2025 | | |
October 31,
2024 | |
| Loan receivables from franchisees | |
| 1,059,060 | | |
| 801,512 | |
| Allowance for expected credit losses | |
| (62,455 | ) | |
| (55,520 | ) |
| Loan receivables from franchisees, net | |
| 996,605 | | |
| 745,992 | |
The following is a summary
of the activity in the allowance for expected credit losses:
| | |
April 30,
2025 | | |
October 31,
2024 | |
| Balance at beginning of period | |
| 55,520 | | |
| 62,602 | |
| Provision | |
| 8,101 | | |
| (8,580 | ) |
| Effect of translation adjustment | |
| (1,166 | ) | |
| 1,498 | |
| Balance at end of period | |
| 62,455 | | |
| 55,520 | |
The following is a summary
of the movement of the loan:
| | |
April 30,
2025 | | |
October 31,
2024 | |
| Balance at beginning of period | |
| 801,512 | | |
| 362,917 | |
| Loans lend to franchisees | |
| 691,377 | | |
| 1,236,518 | |
| Repayment from franchisees | |
| (416,890 | ) | |
| (810,660 | ) |
| Effect of translation adjustment | |
| (16,939 | ) | |
| 12,737 | |
| Balance at end of period | |
| 1,059,060 | | |
| 801,512 | |
The amount of loans that are
past due as of April 30,2025 and October 31, 2024 were $430,501 and $55,495 respectively. As of the reporting date, the amount
of loans that are past due is $378,923.
As of April 30, 2025 and
October 31, 2024, loans receivable from franchisees, net comprised of the following:
| | |
April 30,
2025 | | |
October 31,
2024 | |
| Gao Wenjing | |
| 51,578 | | |
| 52,685 | |
| Wang Shimei | |
| 51,578 | | |
| — | |
| Xu Yong | |
| 8,940 | | |
| — | |
| Nan Xifeng | |
| 8,940 | | |
| — | |
| Zeng Yongjian | |
| 45,388 | | |
| 46,361 | |
| Song Mingfang | |
| 51,578 | | |
| — | |
| Wang Zhiya | |
| — | | |
| 52,685 | |
| Yu Yang | |
| 51,578 | | |
| 52,685 | |
| Wang Limin | |
| — | | |
| 52,685 | |
| Zhou Guixiang | |
| — | | |
| — | |
| Wang Jia | |
| 8,940 | | |
| — | |
| Wang Xuefeng | |
| 178,802 | | |
| 182,641 | |
| Wang Xiaohui | |
| 8,940 | | |
| — | |
| Zheng Yanhai | |
| 8,940 | | |
| 9,132 | |
| Chen Yu | |
| — | | |
| 9,132 | |
| Zhang Ying | |
| — | | |
| 9,132 | |
| Wang Hongli | |
| — | | |
| 9,132 | |
| Ge Xiaoqing | |
| — | | |
| 9,132 | |
| Zhu Hongjun | |
| 51,578 | | |
| 52,685 | |
| Liu Jie | |
| 51,578 | | |
| 52,685 | |
| Zhou Qianqian | |
| 51,578 | | |
| 52,685 | |
| Meng Hao | |
| — | | |
| 52,685 | |
| Liu Zonghui | |
| — | | |
| 52,685 | |
| Li Ruonan | |
| — | | |
| 52,685 | |
| Yan Tianxiang | |
| 8,940 | | |
| — | |
| Wu Yinghan | |
| 178,802 | | |
| — | |
| Liu Yuping | |
| 178,802 | | |
| — | |
| Xiao Yang | |
| 17,880 | | |
| — | |
| Sun Zhongyao | |
| 8,940 | | |
| — | |
| Shen Yue | |
| 8,940 | | |
| — | |
| Sun Xuqiang | |
| 8,940 | | |
| — | |
| Zhao Zhe | |
| 8,940 | | |
| — | |
| Fan Lingfu | |
| 8,940 | | |
| — | |
| | |
| 1,059,060 | | |
| 801,512 | |
| Less: Allowance for expected credit loss | |
| (62,455 | ) | |
| (55,520 | ) |
| Loan receivables from franchisees, net | |
| 996,605 | | |
| 745,992 | |
|