When is the balance of the initial franchise fee for each Nothing Bundt Cakes Bakery to be developed paid?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
f you fully comply with its terms.
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- Fees Payable under the Rider. In connection with the execution of this Rider, you must pay us the following amounts: (a) the Forty-Five-Thousand Dollar ($45,000) initial franchise fee due under the first Franchise Agreement between us, plus (b) total deposits equaling _______________________Thousan
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, if a franchisee is developing multiple bakeries, the balance of the initial franchise fee for each bakery is due when the franchise agreement for that specific bakery is signed. The initial franchise fee for the first bakery is $45,000. For subsequent bakeries developed under a development rider, a deposit equal to 50% of the $45,000 initial franchise fee is required.
This means that a prospective Nothing Bundt Cakes franchisee with a multi-unit development agreement will pay the initial franchise fee in two installments. The first half is paid as a deposit when signing the development rider, and the remaining balance is paid when the individual franchise agreement is signed for each location. This arrangement helps Nothing Bundt Cakes secure the development rights while allowing the franchisee to manage the cash flow associated with opening multiple locations.
It's important to note that these fees are non-refundable, so a franchisee should carefully consider their development plans and financial capabilities before committing to a multi-unit agreement. Additionally, the FDD states that Nothing Bundt Cakes may delay the development or opening of additional bakeries if they believe the franchisee is not prepared to operate them according to their standards. This clause protects the brand's reputation and ensures consistent quality across all locations.