What was the accumulated amortization for Goodwill assets for Nothing Bundt Cakes?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
atements to the extent that it concludes that a contingent liability is probable, and the amount is estimable. The Company is not aware of any litigation, settlements, judgments, or claims that would have a material adverse effect on the Company's financial position, liquidity or results of operations.
3. Goodwill and Intangible Assets
The Company holds certain intangible assets recorded in accordance with accounting policies disclosed in Note 2, which include the following at:
Notes to Financial Statements
December 31, 2023
| Amortizable intangible assets: | Useful life (in years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount |
|---|---|---|---|---|
| Tradenames | Indefinite | $ 409,000,000 | $ $ - | 409,000,000 |
| Goodwill | 10 | 344,881,254 | 85,447,903 | 259,433,35 |
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the accumulated amortization for Goodwill was reported for two periods. As of December 25, 2022, the accumulated amortization for Goodwill was $49,627,370. By December 31, 2023, this figure had increased to $85,447,903.
Goodwill, in accounting terms, represents the intangible assets acquired in a business combination that are not separately identifiable. This can include brand reputation, customer relationships, and intellectual property. Amortization is the systematic reduction of the carrying value of an intangible asset over its useful life. In this case, the Goodwill is being amortized over a 10-year period.
For a prospective Nothing Bundt Cakes franchisee, these figures provide insight into how the franchisor values its intangible assets and manages their accounting. The increase in accumulated amortization from 2022 to 2023 suggests that the Goodwill asset is being systematically written down over time, reflecting its use in generating revenue. Understanding these accounting practices can help franchisees assess the financial health and stability of the Nothing Bundt Cakes franchise system.