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

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.

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:

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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.

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.

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.