Does the Nothing Bundt Cakes FDD include a statement of cash flows?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| March 30, 2025 | |
|---|---|
| Assets | |
| Current assets | |
| Cash and cash equivalents | $ 1,227,831 |
| Accounts receivables, net | 1,326,256 |
| Prepaid expenses | 49,488 |
| Total current assets | 2,603,575 |
| Goodwill | 350,529,756 |
| Other intangible assets, net | 573,503,014 |
| Other non-current assets | 965,414 |
| Total assets | $ 927,601,759 |
| Liabilities and member's equity | |
| Current liabilities | |
| Deferred revenue, current portion | $ 1,090,678 |
| Amounts due to related parties | 10,000 |
| Other current liabilities | 59,257 |
| Total current liabilities | 1,159,935 |
| Long-term liabilities | |
| Deferred revenue | 14,431,221 |
| Other non-current liabilities | 557,411 |
| Total liabilities | 16,148,567 |
| Member's equity | 91 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 93)
What This Means (2025 FDD)
The 2025 Nothing Bundt Cakes FDD includes an unaudited statement of operations, but it does not explicitly mention a statement of cash flows. The unaudited statement of operations for the period of December 30, 2024, through March 30, 2025, shows total revenues of $14,122,929, which consists of royalty, franchise fee, and other revenue.
The statement also details costs and expenses, including general and administrative expenses of $2,387,833 and depreciation and amortization of $3,689,863. The operating income is reported as $8,045,233. Other expenses, net, are listed as $89, leading to an income before income taxes of $8,045,144. After accounting for income tax expense of $19,829, the net income is $8,025,315.
While the statement of operations provides insights into the revenues, expenses, and profitability of Nothing Bundt Cakes, the absence of a cash flow statement means that prospective franchisees cannot assess the actual cash inflows and outflows of the company during the specified period. A statement of cash flows would typically show how Nothing Bundt Cakes is managing its cash, including cash from operations, investing activities, and financing activities. For a complete financial picture, franchisees may want to request a cash flow statement from Nothing Bundt Cakes.