Nothing Bundt Cakes
Nothing Bundt Cakes offers gourmet bundt cakes and other baked goods in franchised bakeries. Known for its signature specialty cakes, the brand operates in the competitive bakery franchise market.
About Nothing Bundt Cakes
Nothing Bundt Cakes franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open the first Nothing Bundt Cakes® Bakery ranges from $667,100 to $906,500 for a bakery that is 1,600 sq. ft. to 1,800 sq. ft. in size. For a bakery larger than 1,800 sq. ft., the total investment ranges from $747,100 to $1,032,500 [p.1]. This includes the $45,000 initial Franchise Fee and other costs such as leases, buildout, signage, training, opening inventory, and additional operational funds [p.36].
What is the initial franchise fee?
The initial franchise fee is $45,000, which must be paid in full upon signing the Franchise Agreement and is non-refundable. This fee is considered fully earned at the time of payment [p.22].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is typically 5% or 6% of each franchise owner's net sales [p.211]. As for advertising, local advertising is no longer required under the Franchise Agreement; however, if a franchisee chooses to undertake local advertising at its own expense, it must comply with specific obligations such as obtaining approval from the company and working with their designated vendor [p.47].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the conditions for renewal.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified factors. This means you may face restrictions when trying to sell or transfer your franchise.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.288]. Additionally, the franchisor can terminate the agreement if there is good cause, such as the franchisee's failure to comply with lawful provisions of the franchise agreement and not curing such failure within a reasonable time frame [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts discuss minimum annual Net Revenue requirements, working capital needs, and changes in investment requirements over time, but they do not specify exact net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
You receive a protected territory, but it is not exclusive in terms of marketing rights, delivery, or clientele [p.53]. The territory's size depends on factors like market area, population density, and drive times [p.52], and you have the right of first refusal for certain non-traditional sites [p.53].
What training and ongoing support does the franchisor provide?
The franchisor provides a pre-opening training program as described in Article 7, which includes training on various aspects such as product preparation, financial controls, operational techniques, equipment usage, inventory management, marketing, and guest service. Additionally, they may hold refresher and ongoing training courses at their discretion [p.118]. The franchisor also delegates some of these responsibilities to NBC for provision of support and services [p.50, p.42], but remains ultimately responsible for ensuring all required services are performed [p.10].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor provides financial performance representations for its franchised Bakeries [p.71], but these are not audited, and no assurance can be given regarding their accuracy [p.71]. The franchisor does not make any financial performance representations other than those specified in Item 19 of the FDD [p.80]. Additionally, the franchisor explicitly states that it does not guarantee earnings or make any promises about specific amounts of earnings or profits for a franchisee [p.302, p.160(c)].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those food and beverage items, novelty gifts, gift packages, gift cards, Proprietary Products, and other products and services that the franchisor prescribes [p.121]. You must also adhere to the requirements set forth in the Operations Manual for preparing, packaging, delivering, and disposing of these products [p.121]. You must buy or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than similar items you could purchase on your own [p.3]. Additionally, you are required to participate in the National Grocery Program [p.37].