What was the average '4-Wall EBITDA' for Nothing Bundt Cakes stores in the top 1/3?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
h the lowest average Net Revenues for the 2024 Fiscal year.
The "Mid 1/3" reflects the results of those 99 franchised Bakeries with average Net Revenues for the 2024 Fiscal Year between the Top 1/3 and Bottom 1/3. The 297 franchised Bakeries had operated for an average of 7.0 years as of FYE 2024.
| Bottom 1/3 | Mid 1/3 | Top 1/3 | Average | Median | #/% Met/Exceeded Average | |
|---|---|---|---|---|---|---|
| Stores in Analysis | 99 | 99 | 99 | 297 | 297 | |
| Net Revenues | $988,656 | $1,362,010 | $2,052,648 | $1,467,771 | $1,338,221 | 120 / 40% |
| COGS | $239,074 | $317,012 | $477,975 | $344,687 | $320,429 | 118 / 40% |
| Gross Profit | $749,583 | $1,044,999 | $1,574,672 | $1,123,085 | $1,017,792 | |
| % of Net Revenues | 75.8% | 76.7% | 76.7% | 76.5% | 76.1% | |
| Labor | $276,413 | $384,825 | $552,430 | $404,556 | $369,091 | 129 / 43% |
| Professional Fees | $8,040 | $8,140 | $8,918 | $8,366 | $6,650 | 92 / 31% |
| Delivery | $15,700 | $22,853 | $32,518 | $23,690 | $20,643 | 125 / 42% |
| Travel | $4,792 | $8,209 | $11,677 | $8,226 | $4,596 | 90 / 30% |
| Office | $6,952 | $9,016 | $11,348 | $9,105 | $7,062 | 104 / 35% |
| Miscellaneous | $2,077 | $2,531 | $4,282 | $2,963 | $680 | 74 / 25% |
| Other Variable Expenses | $42,019 | $56,090 | $82,740 | $60,283 | $56,694 | 128 / 43% |
| Total Variable Expenses | $355,994 | $491,664 | $703,913 | $517,190 | $465,416 | |
| % of Net Revenues | 36.0% | 36.1% | 34.3% | 35.2% | 34.8% | |
| Occupancy | $80,709 | $82,166 | $100,795 | $87,890 | $83,063 | 127 / 43% |
| Utilities | $17,633 | $19,273 | $24,054 | $20,320 | $18,823 | 118 / 40% |
| Other Fixed Expenses | $14,457 | $17,596 | $26,862 | $19,638 | $16,312 | 107 / 36% |
| Total Fixed Expenses | $112,800 | $119,036 | $151,710 | $127,849 | $118,198 | |
| % of Net Revenues | 11.4% | 8.7% | 7.4% | 8.7% | 8.8% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 71–80)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the average 4-Wall EBITDA for the top 1/3 of stores was $493,258. This data is based on the performance of 297 franchised bakeries that had been operating for at least 24 months as of the end of the 2024 fiscal year. The bakeries were divided into three groups based on net revenues, with each group containing 99 stores. The 'Top 1/3' represents the 99 bakeries with the highest average net revenues.
4-Wall EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a measure of a store's operational profitability. It represents the earnings generated by a store before taking into account financing costs, taxes, and accounting adjustments. For a prospective Nothing Bundt Cakes franchisee, this figure indicates the potential earnings that a high-performing store can achieve. It is important to note that this is an average, and individual store performance may vary.
It is important for potential franchisees to understand all the factors that contribute to 4-Wall EBITDA, including revenue, cost of goods sold, labor expenses, and other operating expenses. The FDD provides a detailed breakdown of these expenses for the different performance groups. Prospective franchisees should carefully review these figures and consider their own business plans and market conditions to estimate their potential profitability. Additionally, the FDD indicates that a representative adjustment of $65,806 was applied to the Top 1/3 bakeries to account for misclassified Owner Payroll and/or other Area Manager payroll expenses, which had the effect of increasing 4-Wall EBITDA by $47,392 for all 105 Bakeries. This adjustment should be considered when evaluating the financial performance of these bakeries.