| LOANS RECEIVABLE FROM FRANCHISEES, NET |
NOTE
6 — 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.
Loan
receivables from franchisees, net comprised of the following:
| | |
October 31,
2025 | | |
October 31,
2024 | |
| Loan receivables from franchisees | |
| 1,254,057 | | |
| 801,512 | |
| Allowance for expected
credit losses | |
| (232,876 | ) | |
| (55,520 | ) |
| Loan receivables from
franchisees, net | |
| 1,021,181 | | |
| 745,992 | |
The
following is a summary of the activity in the allowance for expected credit losses:
| | |
October 31,
2025 | | |
October 31,
2024 | |
| Balance at beginning of year | |
| 55,520 | | |
| 62,602 | |
| Provision | |
| 183,501 | | |
| — | |
| Reversal | |
| — | | |
| (8,580 | ) |
| Written-off | |
| (8,571 | ) | |
| — | |
| Effect of translation
adjustment | |
| 2,426 | | |
| 1,498 | |
| Balance at end of year | |
| 232,876 | | |
| 55,520 | |
The
following is a summary of the movement of the loan:
| | |
October 31,
2025 | | |
October 31,
2024 | |
| Balance at beginning of year | |
| 801,512 | | |
| 362,917 | |
| Loans lend to franchisees | |
| 1,103,211 | | |
| 1,236,518 | |
| Repayment from franchisees | |
| (656,937 | ) | |
| (810,660 | ) |
| Effect of translation
adjustment | |
| 6,271 | | |
| 12,737 | |
| Balance at end of year | |
| 1,254,057 | | |
| 801,512 | |
The
amount of loans that are past due as of October 31, 2025 and 2024 were $947,042 and $55,495, respectively.
Loans
receivable from franchisees, net comprised of the following:
| | |
October 31,
2025 | | |
October 31,
2024 | |
| Gao Wenjing | |
| 52,691 | | |
| 52,685 | |
| Wang Shimei | |
| 52,691 | | |
| — | |
| Zeng Yongjian | |
| 46,369 | | |
| 46,361 | |
| Song Mingfang | |
| 52,691 | | |
| — | |
| Wang Zhiya | |
| 52,691 | | |
| 52,685 | |
| Yu Yang | |
| 108,896 | | |
| 52,685 | |
| Wang Limin | |
| — | | |
| 52,685 | |
| Wang Xuefeng | |
| 182,664 | | |
| 182,641 | |
| Zheng Yanhai | |
| 9,133 | | |
| 9,132 | |
| Chen Yu | |
| 9,133 | | |
| 9,132 | |
| Zhang Ying | |
| 9,133 | | |
| 9,132 | |
| Wang Hongli | |
| 9,133 | | |
| 9,132 | |
| Ge Xiaoqing | |
| — | | |
| 9,132 | |
| Zhu Hongjun | |
| — | | |
| 52,685 | |
| Liu Jie | |
| — | | |
| 52,685 | |
| Zhou Qianqian | |
| — | | |
| 52,685 | |
| Meng Hao | |
| 52,691 | | |
| 52,685 | |
| Liu Zonghui | |
| — | | |
| 52,685 | |
| Wu Yinghan | |
| 182,664 | | |
| — | |
| Liu Yuping | |
| 182,664 | | |
| — | |
| Xiao Yang | |
| 18,266 | | |
| — | |
| Shen Yue | |
| 9,133 | | |
| — | |
| Zhao Zhe | |
| 9,134 | | |
| — | |
| Shen Huaimei | |
| 108,896 | | |
| — | |
| Tang Sumei | |
| 52,692 | | |
| — | |
| Li Ruonan | |
| 52,692 | | |
| 52,685 | |
| | |
| 1,254,057 | | |
| 801,512 | |
| Less: Allowance for
expected credit loss | |
| (232,876 | ) | |
| (55,520 | ) |
| Loan
receivables from franchisees, net | |
| 1,021,181 | | |
| 745,992 | |
|