Nothing Bundt Cakes Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$551,000

-

$978,000

OPERATING PROFIT

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Emily

Updated

February 15, 2024

Is

Nothing Bundt Cakes

a franchise?

Yes,
Nothing Bundt Cakes
is a franchise and
currently
accepts
franchise
applications

Nothing Bundt Cakes, a renowned franchise specializing in gourmet Bundt cakes, was founded in 1997 by Dena Tripp and Debbie Shwetz. The inception of this franchise took place in their Las Vegas home kitchens, born out of a passion for creating delectable cakes to entertain their friends and family. This passion project quickly evolved into a successful business venture, leading to the establishment of its headquarters in Dallas, Texas.

The franchise stands out in the market through its unique offering of handcrafted Bundt cakes, available in a variety of flavors and sizes to cater to different occasions and preferences. From individual-sized "Bundtlets" to larger 8" and 10" cakes, and even tiered options for special events, Nothing Bundt Cakes has a wide selection to choose from. The brand differentiates itself by emphasizing high-quality ingredients and proprietary formulations, ensuring that each cake is not only visually appealing but also delicious.

Moreover, the franchise has garnered attention for its commitment to creating a joyful experience for its customers, which is reflected in their product offerings and customer service. With an array of decorations and gift options available, Nothing Bundt Cakes positions itself as a one-stop shop for celebrations, further distinguishing itself from competitors in the bakery sector.

In May 2021, Roark Capital, an Atlanta-based private equity firm, acquired Nothing Bundt Cakes, marking a new chapter in the franchise's journey. This partnership is anticipated to bolster support for bakery owners within the franchise and facilitate further growth, while maintaining the brand's essence of providing joy-giving experiences to its customers.

How many

Nothing Bundt Cakes

franchises

are there?

In 2022, there were
443
outlets in the United States, of which
427
are franchises, and
16
are corporate-owned.

What are the

Nothing Bundt Cakes

franchise

fees?

Initial franchise fee

$35,000

Royalty fee

6.0%

Advertising fee

5.0%

Initial Franchise Fee ($35,000)

The initial franchise fee for a Nothing Bundt Cakes franchise is $35,000, payable in full upon signing the franchise agreement. However, if you are an existing franchise owner and have been approved to purchase an additional franchise, the initial franchise fee is reduced to $30,000.

Royalty Fee (6% of Net Revenues)

Franchisees are required to pay a weekly royalty fee every Tuesday, amounting to 6% of the net revenues generated from all business conducted at or from the bakery during the preceding calendar week.

Real Estate and Construction Fee ($3,500)

A fee of $3,500 is associated with site selection, non-legal lease review, and architectural, mechanical, electrical, and plumbing drawing and plan review necessary for building out the bakery.

Opening Advertising Program ($10,000)

A fee of $10,000 is required for the opening advertising program to promote the initial marketing, advertising, and promotions in your territory. This fee is due upon executing a franchise agreement, and franchisees may be required to spend up to an additional $5,000 for the opening advertising program.

How much does

it cost

to start a

Nothing Bundt Cakes

franchise?

It costs between
$551,000
and
$978,000
to start a
Nothing Bundt Cakes
franchise.

The total estimated initial investment ranges from $396,875 to $545,475. Below is a detailed table of the estimated costs associated with starting a Nothing Bundt Cakes franchise:

Type of Expenditure Amount
Initial Franchise Fee $35,000
Extension Fee $0 to 70% of then current initial franchise fee
Rent and Security Deposit $6,500 to $8,500
Bakery Improvements $197,500 to $364,510
Architect – Design $8,000 to $15,500
Fixtures and Equipment – Front of Bakery $18,000 to $72,500
Fixtures and Equipment – Back of Bakery $123,000 to $227,000
Exterior Signage $6,500 to $38,000
Initial Inventory $20,100 to $24,000
Point of Sale System $6,000 to $11,300
Insurance $2,800 to $5,500
Business License and Permits $1,500 to $4,500
Professional Fees $3,900 to $11,200
Opening Advertising Program $10,000 to $15,000
Training Expenses $4,000 to $7,000
Delivery Vehicle Monthly lease or loan payment $18,500 to $33,200
Additional Funds-3 months $30,000 to $45,000
Total $551,300 to $978,210

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Nothing Bundt Cakes

provide

training

to its

franchisees?

Yes,
Nothing Bundt Cakes
provides training to its franchisees.

Nothing Bundt Cakes has a structured training program for its franchisees to ensure they are well-prepared to operate their franchises successfully.

The training program is initiated with a pre-opening training program, which is described in detail in the franchise agreement. The training takes place at one of the company bakeries in Dallas, Texas, or any other location designated by Nothing Bundt Cakes.

The training covers various aspects including product preparation and packaging, maintaining financial controls and general bookkeeping procedures, operational techniques, using the required equipment and computer hardware and software, inventory controls, marketing and advertising techniques, and guest service and maintenance of quality standards.

Does

Nothing Bundt Cakes

provides

territory

protection?

Franchisees are granted the right to operate a Nothing Bundt Cakes Bakery from an Approved Location, which is determined through the company's Site Selection Addendum. This Approved Location is situated within a specific geographic area termed the "Territory."

However, it's essential to note that the Territory does not guarantee exclusivity. Specifically, the Territory will exclude all Non-Traditional Sites, and there are no restrictions on the company or its affiliates' rights to operate or grant others the right to operate Approved Locations at these Non-Traditional Sites.

Furthermore, franchisees will not receive an exclusive territory in terms of marketing rights, delivery, or clientele. They may face competition from other franchisees, outlets that Nothing Bundt Cakes owns, or other channels of distribution or competitive brands controlled by the company. The company also retains the right to open or license others to open non-traditional sites within the Territory.

Can a

Nothing Bundt Cakes

franchise

be run as

a passive

investment?

The franchisee is expected to devote their personal full-time attention and best efforts to the management and operation of the Bakery.

If the franchisee is a corporation, limited liability company, or partnership, one of their principals must serve as the operator of the Bakery (the "Operator") and dedicate their full time and attention and best efforts to the day-to-day operations of the Bakery.

The Operator must be approved by the franchisor and must successfully complete the franchisor's initial training program and meet their then-current standards.

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