What do intangible assets consist of for Nothing Bundt Cakes?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fiscal year Ended | |||
|---|---|---|---|
| December 29, 2024 | December 31, 2023 | ||
| Cash flows from operating activities: | |||
| Net income | $ 29,103 | $ | 16,805 |
| Adjustments to reconcile net income to net cash provided by | |||
| operating activities: | |||
| Amortization of intangible assets | 14,759 | 15,043 | |
| Amortization of off-market agreement liability | (368) | (368) | |
| Changes in assets and liabilities: | |||
| Accounts receivable | (815) | 528 | |
| Prepaid expenses | (398) | (429) | |
| Accounts payable | - | (14) | |
| Deferred revenue | 4,332 | 4,850 | |
| Other liabilities | (7) | 84 | |
| Net cash provided by operating activities | $ 46,606 | $ | 36,499 |
| Cash flows from financing activities: | |||
| Proceeds (to) from related parties | $ 12 | $ | - |
| Distributions | (46,357) | (35,890) | |
| Net cash used in financing activities | $ (46,345) | $ | (35,890) |
| Net increase in cash and cash equivalents | 261 | 609 | |
| Cash and cash equivalents, beginning of period | 1,637 | 1,028 | |
| Cash and cash equivalents, end of period | 1,898 | 1,637 | |
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.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 FDD, Nothing Bundt Cakes owns all Franchise Assets, including franchise agreements and intellectual property related to the business. The company grants franchisees the rights to operate Nothing Bundt Cakes bakeries, use the "System," proprietary marks, and market and sell approved products. The "System" includes trademarks, service marks, commercial symbols like the "Nothing Bundt Cakes" mark, bakery design décor, and images, all of which the company may modify.
Confidential Information, which would be considered an intangible asset, includes information, processes, methods, techniques, procedures, and knowledge related to the development or operation of a bakery. This encompasses know-how, manuals, and trade secrets, whether or not legally recognized. It includes information not generally known or easily accessible, which is important for developing and operating a Nothing Bundt Cakes franchise.
Specifically, confidential information includes the Operations Manual, System standards, sales and marketing techniques, personnel recruitment and training programs, lists of prospective franchisees, supplier networks, strategic partners, vendors, manufacturers, franchisee referral sources, billing and collection methods, financial information, and the intellectual property infrastructure associated with the System, including software and computer systems. It also covers information about the company, franchise system, business plans, marketing plans, Proprietary Recipes, trade secrets, pricing plans, and guest information.