Does the Nothing Bundt Cakes FDD include notes to the financial statements?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
NBC Franchisor LLC NOTES TO THE FINANCIAL STATEMENTS
1. Nature of Business
NBC Franchisor LLC (the "Company"), a special purpose Delaware limited liability company, was organized on June 14, 2021. The Company is a direct, wholly owned subsidiary of NBC Funding LLC (the "Debt Issuer"), which is a special purpose Delaware limited liability company that is a direct, wholly owned subsidiary of NBC SPV Guarantor LLC and an indirect, wholly owned subsidiary of NBC Holdings, LLC ("Parent").
The Company was formed in connection with a financing transaction (the "Securitization Transaction"), which was completed on July 30, 2021 (see Note 4), and serves as the "franchisor" of the Nothing Bundt Cakes brand and owns all Franchise Assets, which includes all franchise agreements and intellectual property related to the business. The Company grants the rights to own and operate Nothing Bundt Cakes bakeries, which specialize in selling decorated bundt cakes and other related gift items. The Company grants each franchisee a transferable right and license to use the "System," the proprietary marks, and to market, sell, and provide the approved products in accordance with the System. The System consists of certain trademarks, service marks, and commercial symbols, including the mark "Nothing Bundt Cakes," certain bakery design décor and images, all of which the Company may modify from time to time. Nothing Bundt Franchising, LLC (the "Manager"), is an affiliated company that performs certain services for the Company under a management agreement (refer to Note 7).
The Company had 643 franchised bakeries as of December 29, 2024 and 542 franchised bakeries as of December 31, 2023.
2. Significant Accounting Policies
- a. Basis of Accounting The accounts are maintained, and the financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
- b. Fiscal Year The Company's fiscal year ends on the last Sunday in December. Fiscal year 2024 in the following table encompasses a 52-week period whereas fiscal year 2023 reflects a 53-week period.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 93)
What This Means (2025 FDD)
Yes, the 2025 Nothing Bundt Cakes FDD includes notes to the financial statements. These notes provide additional context and details about the company's financial performance and structure.
According to the FDD, the notes cover various aspects, including the organization and nature of the business. NBC Franchisor LLC was organized on June 14, 2021, and is a direct, wholly-owned subsidiary of NBC Funding LLC. The company serves as the franchisor for the Nothing Bundt Cakes brand, granting rights to operate bakeries specializing in decorated bundt cakes and related gift items. As of December 29, 2024, Nothing Bundt Cakes had 643 franchised bakeries.
The notes also detail significant accounting policies, such as the basis of accounting, which follows accounting principles generally accepted in the United States of America (GAAP). The company's fiscal year ends on the last Sunday in December, with fiscal year 2024 encompassing a 52-week period, while fiscal year 2023 reflected a 53-week period. These notes are essential for a prospective franchisee to understand the financial statements and the underlying accounting practices of Nothing Bundt Cakes.