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Considering a Nothing Bundt Cakes Franchise? Don’t Overlook These 36 Important Franchise Fees

by Franchise Chatter on December 11, 2016

in Bakery Franchise, Franchise Fees



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Don't Invest in a Franchise Until You Check Out This List

Nothing Bundt Cakes Photo by felsull

This post was updated on July 2, 2017 to reflect information from Nothing Bundt Cakes’ 2017 FDD.

If you are considering a Nothing Bundt Cakes franchise, don’t get blindsided by these 36 important franchise fees (from the initial franchise fee, to the royalty fee, to 34 other fees found in Items 5 and 6 of Nothing Bundt Cakes’ 2017 FDD).

  • Except as otherwise provided for, all fees stated here are fully earned and nonrefundable upon payment.

1.  Initial Franchise Fee:  $30,000

  • You must pay Nothing Bundt Cakes an initial franchise fee of $30,000 when you sign a Franchise Agreement (the “Franchise Fee”). The Franchise Fee is payable in full and deemed fully earned and nonrefundable upon payment.
  • Except as provided here, the Franchise Fee is uniform to all franchisees in the System.
  • Nothing Bundt Cakes does not offer financing for the Franchise Fee.

2.  Additional Locations:  $25,000



  • If you are an existing franchise owner and wish to acquire a franchise for another territory, and if you are qualified to purchase an additional franchise, Nothing Bundt Cakes will reduce the initial franchise fee to $25,000.

3.  Area Development Fee:  $30,000 for your first Bakery, plus $25,000 for each additional Bakery developed under the Area Development Agreement

  • In addition to Nothing Bundt Cakes’ single unit offering, it grants qualified individuals the right to own and operate multiple Bakeries in a designated territory through an “Area Development Agreement.”
  • The area development fee (the “Area Development Fee”) is $30,000 for your first Bakery, plus $25,000 for each additional Bakery developed under the Area Development Agreement.
  • The Area Development Fee is payable to Nothing Bundt Cakes in the following manner:  $30,000 for your first Bakery, plus $12,500 for each additional Bakery upon the execution of the Area Development Agreement. The remaining $12,500 for each additional Bakery is payable when you sign a Franchise Agreement for an additional Bakery.
  • Nothing Bundt Cakes will not charge an initial franchise fee for Bakeries developed under the Area Development Agreement.

4.  Initial Purchases:  $15,681

  • You must purchase certain items from Shipp Distribution before your Bakery opens for business, including cake design accessories, dry cake mix ingredients, smallwares, and other supplies that are distributed through Nothing Bundt Cakes’ affiliate, Shipp Distribution.
  • Nothing Bundt Cakes estimates the cost of these items to be approximately $15,681. This amount is not refundable.

5.  Opening Advertising Fee:  $5,000 to $7,000

  • You must pay to Nothing Bundt Cakes the sum of $5,000 to be spent by it for your opening advertising program (the “Opening Advertising Program”). This $5,000 is the minimum amount to be spent for your grand opening, and you may spend more. This amount is payable to Nothing Bundt Cakes in a lump sum when you sign the Franchise Agreement and is not refundable.
  • Nothing Bundt Cakes may require you to spend up to an additional $2,000 for your Opening Advertising Program.

6.  Extension Fee – Franchise Agreement:  $3,500

  • Under Section 4.1 of the Franchise Agreement, you are required to purchase or lease an approved location for the Bakery meeting Nothing Bundt Cakes’ standards and specifications (the “Approved Location”) within 90 days of the Effective Date of the Franchise Agreement.
  • In the event you do not meet the 90-day site selection deadline as required by Section 4.1 of the Franchise Agreement, Nothing Bundt Cakes will charge you a fee of $3,500 on the 90th day via an electronic funds transfer.
  • In the event you open your Bakery within 270 days of the Effective Date of the Franchise Agreement, Nothing Bundt Cakes will refund the $3,500 fee.
  • Nothing Bundt Cakes has the right to terminate your Franchise Agreement if you fail to pay or it is otherwise unable to process the $3,500 payment.

7.  Extension Fee – Area Development Agreement:  $10,000

  • During the term of the Area Development Agreement, you may request up to two extensions of 90 days in which to execute an Additional Franchise Agreement under the Mandatory Development Schedule (an “Extension”). In order to receive an Extension, you must request the Extension in writing no later than 60 days prior to the expiration of the deadline to execute an Additional Franchise Agreement for an additional Bakery and pay Nothing Bundt Cakes an extension fee of $10,000.
  • An extension of time in which to execute an Additional Franchise Agreement under the Mandatory Development Schedule will not affect your deadlines for signing Additional Franchise Agreements for any additional Bakeries to be developed under the Area Development Agreement or extend the term of the Area Development Agreement.

8.  Royalty:  5% of Bakery’s weekly Net Revenues

  • Due Date:  Due on Tuesday of each week on Net Revenues during previous week ending Sunday.
  • “Net Revenues” mean all of your revenue from operating your Bakery, including delivery, shipping, and E-Commerce Revenues, and revenues made from sales to National Accounts, but excluding taxes collected from Guests and paid to taxing authorities and reduced by the amount of any documented refunds, credits, allowances, and charge-backs made by the Bakery in accordance with Nothing Bundt Cakes’ standards and specifications.
  • All royalty payments must be made by EFT.

9.  Marketing Production Fund (the “Fund”):  1% of Bakery’s weekly Net Revenues

  • Due Date:  Due on Tuesday of each week on Net Revenues during previous week ending Sunday.
  • Contributions to the Marketing Production Fund (the “Marketing Fee”) must be paid by EFT.

10.  Local Advertising Fee:  3% of Bakery’s weekly Net Revenues

  • Due Date:  Due on Tuesday of each week on Net Revenues during previous week ending Sunday.
  • The Local Advertising Fee must be paid by EFT.

11.  Local Cooperative Fund:  if Nothing Bundt Cakes designates a Cooperative Fund for your territory, you must participate in the Cooperative Fund, and your contributions will be credited towards your Local Advertising Fee payment

  • Due Date:  Must be spent monthly.
  • If Nothing Bundt Cakes designates a local cooperative fund (“Cooperative”) for your Territory, you must participate and your contributions to the Cooperative will be credited towards the Local Advertising Fee.

12.  Initial Training for Additional or Replacement Operators:  $2,500 per person, plus expenses



  • Due Date:  Beginning of training.
  • Nothing Bundt Cakes provides initial training for 2 people at no additional cost. You must pay this amount for any additional or replacement Operator that you hire.
  • You must also pay all expenses your trainee incurs, including travel, lodging, meals, and applicable wages.
  • You must at all times have a full time Operator certified by Nothing Bundt Cakes to operate the Bakery.

13.  Additional Training or Assistance During Franchise Term:  Nothing Bundt Cakes’ then-current fee, currently $300 per trainer per day, plus expenses for training at Nothing Bundt Cakes’ location; $500 per day, plus expenses for training in your Territory

  • Due Date:  When training or assistance begins.
  • A day is 8 hours of work at the location.
  • Travel time is billed separately on an hourly basis.

14.  Renewal:  50% of Nothing Bundt Cakes’ then-current Initial Franchise Fee

  • Due Date:  Upon request for renewal of your franchise.

15.  Transfer in the Event of a Sale of the Bakery:  $5,000, plus any broker fees or commissions Nothing Bundt Cakes incurs

  • Due Date:  Upon request for transfer.
  • You must obtain Nothing Bundt Cakes’ approval in connection with any transfer of the Bakery.

16.  Transfer of the Ownership Interests of Franchisee:  $3,500, plus any broker fees or commissions Nothing Bundt Cakes incurs

  • Due Date:  Upon request for transfer.
  • In the event that you are a corporation, limited liability company, or partnership, you must obtain Nothing Bundt Cakes approval in connection with any transfer of your ownership interests.

17.  Guest Experience Monitor (“GEM”):  then-current fee, currently $462 annually

  • Due Date:  When billed.
  • Payable by electronic funds transfer as a reimbursement to Nothing Bundt Cakes.
  • Nothing Bundt Cakes presently does not charge or collect the GEM fee.

18.  Operational Evaluation Fee:  Nothing Bundt Cakes’ then-current per diem fee, plus reimbursement of its expenses; current per diem fee is $300

  • Due Date:  On demand.
  • If a serious Guest infraction or mystery shopper program infraction is reported, Nothing Bundt Cakes has the right to visit your Bakery immediately and take any steps necessary to correct an infraction.
  • You must pay Nothing Bundt Cakes a per diem fee for each representative it sends to your Bakery, and you must reimburse it all expenses incurred by its representative(s), including any costs related to taking corrective measures it requires or makes.

19.  Prohibited Product or Service Fee:  $250 per day of use of unauthorized products or services

  • Due Date:  If incurred.
  • This is in addition to other remedies available to Nothing Bundt Cakes. You must cure your default immediately upon Nothing Bundt Cakes’ verbal or written notification to you.
  • Once you have been notified, if the prohibited item is again placed in the Bakery, the fee will be applied.

20.  Insurance:  reimbursement of Nothing Bundt Cakes’ costs, plus an 18% Administrative Fee

  • Due Date:  If incurred.
  • If you do not maintain the required insurance coverages, Nothing Bundt Cakes has the right (but not the obligation) to obtain insurance on your behalf.

21.  Product Purchases from Shipp Distribution:  will vary under the circumstances

  • Due Date:  As incurred.
  • If an EFT is rejected due to insufficient funds, orders may be stopped until amounts are paid in full, or you may be put on COD.
  • Subject to late fees and an NSF charge pursuant to the Franchise Agreement.

22.  Product and Supplier Testing:  costs of testing

  • Due Date:  When billed.
  • This covers the costs of testing new products or inspecting new suppliers you propose.

23.  Annual Conference:  will vary based on Nothing Bundt Cakes’ costs of establishing and running the conference

  • Due Date:  As incurred.
  • Nothing Bundt Cakes may charge you a reasonable fee to attend an annual franchisee convention (besides your travel and living expenses); the fee will depend on its costs of establishing and running the conference.

24.  POS System Ongoing Fees:  the then-current fee, presently $1,772 for 12 months of service

  • Due Date:  Monthly.
  • You must pay Nothing Bundt Cakes’ designated vendor a monthly fee for POS System support, PCI Compliance services, and data warehouse services.
  • The fee is subject to change.

25.  Online Ordering:  currently $105 activation fee, plus $85 per month, excuding any third-party charges such as credit card processing, Google Maps, etc.

  • Due Date:  Due monthly to Nothing Bundt Cakes’ designated supplier/vendor.
  • You must pay Nothing Bundt Cakes’ vendor a one-time activation fee of $105 to participate in the E-Commerce Program, as well as a monthly fee of $85, excuding any third-party charges such as credit card processing, Google Maps, etc.
  • The E-Commerce fees are subject to increases in Nothing Bundt Cakes’ or its vendor’s sole discretion.

26.  Remodeling of Bakery:  costs of remodeling and/or redecorating your Bakery to meet Nothing Bundt Cakes’ then-current System Standards, which will be no more than $25,000/year unless remodeling is related to renewal of your Franchise Agreement

  • Due Date:  As incurred.
  • Nothing Bundt Cakes may require you to remodel and/or redecorate your Bakery. It will not make this request for the first five years of your Franchise Agreement, unless these modifications are required by your lease or applicable law.
  • Nothing Bundt Cakes will not require any expenditures in any year greater than $25,000, except if the expenditure is related to renewal of your Franchise Agreement.

27.  Wholesale Account Approval Fee:  $1,500, plus Nothing Bundt Cakes’ costs of inspection and expenses, including travel costs and per diem

  • Due Date:  As incurred.
  • The Franchise Agreement does not grant you the right to engage in wholesale distribution.
  • After your first six months of operation, Nothing Bundt Cakes may, at its sole discretion, allow you to distribute products to wholesalers or retailers in your area if you are compliant with the terms of your Franchise Agreement.
  • Nothing Bundt Cakes must approve the wholesaler and may designate the wholesaler as a National Account if the wholesaler operates multiple locations within and outside of your Territory.

28.  Insufficient Funds, Interest, Late Fees, Collection Costs, and Default:  $50 for each late payment, plus 18% interest or the highest lawful commercial interest rate; and the cost of any audit if you understate fees by more than 2%; and $500 per diem plus expenses if Nothing Bundt Cakes steps in to operate your Bakery upon default or if you are unable to meet your scheduled opening date and Nothing Bundt Cakes needs to reschedule opening assistance

  • Due Date:  When billed.
  • Nothing Bundt Cakes will attempt an EFT draft every day until all amounts owed to it are paid in full. Late fees are doubled every 30 days subject to the maximum legal amount.
  • You must pay for Nothing Bundt Cakes’ attorneys’ fees in enforcing its rights.
  • If Nothing Bundt Cakes conducts an audit of your books and records, you must pay for the cost of the audit if it reveals you have understated payments due to Nothing Bundt Cakes by more than 2%.

29.  Indemnification:  will vary under circumstances

  • Due Date:  As incurred.
  • You must indemnify Nothing Bundt Cakes for certain claims or actions arising out of your operation of the Bakery and misuse of its Marks and System.

30.  Site Evaluation:  $500, plus Nothing Bundt Cakes’ travel, meal, and lodging expenses

  • Due Date:  On demand.
  • Nothing Bundt Cakes will provide one site evaluation at no cost, but if you request or if it needs to do additional site evaluations, you must pay it a per diem rate for its representative and reimburse its expenses, including travel, lodging, and meals.

31.  Fee for Unauthorized Sales:  if you make sales in another franchisee’s territory, you must remit 100% of Net Revenues from the sale to the franchisee that owns the territory and make a contribution of $500 per incident to the Marketing Production Fund

  • Due Date:  On demand.
  • Franchisees are prohibited from offering and selling Products within other franchisees’ territories.
  • Nothing Bundt Cakes also has the right to terminate the Franchise Agreement if you violate another franchisee’s territorial rights.

32.  Real Estate Review and Coordination Expenses:  $3,000

  • Due Date:  On demand.
  • Nothing Bundt Cakes reserves the right to require you to pay it or its designated suppliers a fee of $3,000, which will cover its costs associated with site selection and non-legal lease review.

33.  Audit Fee:  cost of audit, plus expenses incurred in connection with the audit (including travel, lodging and wage expenses, and reasonable accounting and legal costs)

  • Due Date:  When billed.
  • Payable only if Nothing Bundt Cakes determines, after an audit, that you have understated Net Revenues or the fees due under the Franchise Agreement in any statement or report of more than 2%.

34.  Master Architect Program Fee:  $500

  • Due Date:  On demand.
  • If you choose to use an architect outside of Nothing Bundt Cakes’ approved vendor list, Nothing Bundt Cakes may require that its designated architect conduct a final plan review prior to receiving corporate approval. You must pay Nothing Bundt Cakes’ designated architect a fee for the final plan review.
  • Should there be any revisions required by Nothing Bundt Cakes’ prototype architect, you will be responsible for the costs associated with all plan revisions.
  • You must receive written approval on the final plans from a corporate representative prior to starting construction.

35.  Monthly Music Fee:  currently $20 per month. Additionally, there is a $2.99 per month fee for messaging on hold, as well as a $12.00 per month fee for media player lease. There is an option to own the media player for a onetime fee of $299.

  • Due Date:  Monthly.
  • You must pay Nothing Bundt Cakes’ designated vendor a monthly fee for the Bakery’s music service.

36.  Digital Menu Board Service:  currently $35 per month

  • Due Date:  Monthly.
  • You must pay Nothing Bundt Cakes’ designated vendor a monthly service fee for the Bakery’s digital menu board.


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