Are the financial statements for Nothing Bundt Cakes audited by an independent CPA?
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)
According to the 2025 Nothing Bundt Cakes FDD, the statement of operations included in the disclosure document is unaudited. This means that the financial information presented has not been verified by an independent Certified Public Accountant (CPA). The unaudited statement of operations covers the period from December 30, 2024, through March 30, 2025. During this time, Nothing Bundt Cakes reported total revenues of $14,122,929, which primarily came from royalty, franchise fee, and other revenue.
Costs and expenses for Nothing Bundt Cakes included $2,387,833 in general and administrative expenses and $3,689,863 in depreciation and amortization. The operating income was $8,045,233. After accounting for other expenses, net of $89, the income before income taxes was $8,045,144. The income tax expense was $19,829, resulting in a net income of $8,025,315 for the specified period.
Because the statement is unaudited, prospective franchisees should exercise caution and conduct their own due diligence. It is advisable to consult with a financial advisor or accountant to review these statements and assess the financial health of Nothing Bundt Cakes. While unaudited statements can provide a general overview, they lack the assurance that comes with an independent audit, which verifies the accuracy and reliability of the financial information.