Does the FDD include notes related to the financial statements for the Bft franchise?

any collateralize the existing debt of the Member.

Basis of presentation – The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP").

The Company has numerous transactions with its Member and affiliates. The Company and its Member have a centralized cash management process through the Member, which results in net advances to the Member. The Company relies on resources from the Member and other related parties under common control of the Member or the Member's parent to support its operations including centralized cash collection and management support functions, as necessary to operate the Company's franchising business. Accordingly, the consolidated financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations that would have occurred if the Company had operated without such affiliations. The Member has committed to continue to provide these services to the Company for the Company's franchising operations.

Principles of consolidation – The Company's consolidated financial statements include the accounts of its wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation.

Use of estimates – The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements. Actual results could differ from these estimates under different assumptions or conditions.

Note 2 – Summary of Significant Accounting Policies

Cash and cash equivalents – The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents.

Notes to Consolidated Financial Statements (amounts in thousands)

Concentration of credit risk – The Company holds its cash balances in one financial institution. As the cash balances exceed the amounts covered by the Federal Deposit Insurance Corporation, the excess balances could be at a risk of loss.

Accounts receivable and allowance for expected credit losses – Accounts receivable primarily consist of amounts due from franchisees for franchise territory fees, royalties, advertising contributions and training. Receivables are unsecured; however, the franchise agreements provide the Company the right to withdraw funds from the franchisee's bank account or to terminate the franchise for nonpayment. On a periodic basis, the Company evaluates its accounts receivable balance and establishes an allowance for expected credit losses based on a number of factors, including evidence of the franchisee's ability to comply with credit terms, economic conditions and historical receivables.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)