Does the Nothing Bundt Cakes FDD provide a summary of goodwill and intangible balances and activity?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
On July 30, 2021, as part of the Securitization Transaction, the Manager contributed to the Company substantially all of its intellectual property, including all trademarks and internet domains (collectively, the "Securitization IP"), as well as all franchise agreements, development agreements, and all rights to develop and expand substantially all franchising and licensing activities with respect to the Nothing Bundt Cakes brand (collectively, the "Franchise Assets").
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial statements of Nothing Bundt Cakes include information about the company's structure, noting it was organized on June 14, 2021. It is a direct, wholly-owned subsidiary of NBC Funding LLC, which itself is a subsidiary of NBC SPV Guarantor LLC and NBC Holdings, LLC. The company serves as the franchisor for the Nothing Bundt Cakes brand, owning all franchise assets, including franchise agreements and intellectual property. As of December 29, 2024, Nothing Bundt Cakes had 643 franchised bakeries, compared to 542 as of December 31, 2023.
In July 2021, the Manager contributed substantially all of its intellectual property, including trademarks and internet domains (collectively, the "Securitization IP"), as well as all franchise agreements, development agreements, and all rights to develop and expand franchising and licensing activities with respect to the Nothing Bundt Cakes brand (collectively, the "Franchise Assets") to the Company. This indicates the importance of intangible assets like intellectual property and franchise rights to the Nothing Bundt Cakes business model.
While the FDD discusses the ownership and transfer of intellectual property and franchise assets, it does not provide a specific summary of goodwill and intangible asset balances or activity. A prospective franchisee would need to request additional financial details from Nothing Bundt Cakes to fully understand the valuation and accounting treatment of these assets.