Are the balance sheets in the Aunt Millies Bakeries FDD presented on a consolidated basis?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity: The consolidated financial statements contain the accounts of Perfection Bakeries, Inc., Perfection Distribution LLC, Perfection Associates LLC, and First Capital Acceptance Corporation, (collectively, the "Company") which operate under common management and are of common ownership. Perfection Distribution LLC, Perfection Associates LLC, and First Capital Acceptance Corp., are all 100% wholly owned subsidiaries of Perfection Bakeries, Inc. Perfection Bakeries, Inc. produces and distributes various bread, bun and bakery products throughout the Midwest, predominantly in Indiana, Michigan, Illinois, Kentucky, Wisconsin, and Ohio. The Company also sells its product nationally and internationally through its Bakehouse division, which is the Company's frozen baked goods division, representing approximately 21% and 16% of the Company's total net sales for the years ended September 30, 2023 and 2022, respectively. Perfection Distribution LLC operates as the transportation distribution function for Perfection Bakeries, Inc. as a "carrier for hire" and results in maximizing savings related to sales and use tax. Perfection Associates LLC functions as an employee leasing company, which leases employees back to Perfection Bakeries, Inc. and Perfection Distribution LLC. First Capital Acceptance Corporation serves as the finance company for the routes that are sold to independent distributors (see Note 4).
All significant intercompany account balances and transactions have been eliminated in the consolidated financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the financial statements are presented on a consolidated basis. The consolidated financial statements include the accounts of Perfection Bakeries, Inc., Perfection Distribution LLC, Perfection Associates LLC, and First Capital Acceptance Corporation. These entities operate under common management and ownership, with Perfection Distribution LLC, Perfection Associates LLC, and First Capital Acceptance Corp. being wholly-owned subsidiaries of Perfection Bakeries, Inc.
The consolidated statements combine the financial results of Aunt Millie's Bakeries and its subsidiaries, providing a comprehensive view of the company's overall financial position and performance. All significant intercompany account balances and transactions have been eliminated in these consolidated statements, which is a standard accounting practice to avoid double-counting and to present a clear picture of the group's financial standing to external stakeholders.
Prospective franchisees reviewing Aunt Millie's Bakeries's FDD can be assured that the financial statements reflect the entire economic entity, including its subsidiaries. This gives a more accurate representation of the financial health and stability of the overall organization. The inclusion of an independent auditor's report further validates the accuracy and reliability of these consolidated financial statements, offering additional assurance to potential investors.