How does Nothing Bundt Cakes collect Royalty and advertising fees?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall input all sales only into the Bakery's POS System and supply us with all Net Revenues data that we specified in the Franchise Agreement and in our Operations Manuals or as we direct from time to time for the purpose of calculating the weekly Royalty.
Each week begins on Monday and ends on Sunday.
All Net Revenues data, which is electronically provided to us on a weekly basis through the Bakery's POS System, shall be certified to be true and correct by you.
We shall review the Net Revenues data you provide to us and shall deduct the required Royalty and advertising fees due to us under the Franchise Agreement.
Presently, these amounts are collected on Tuesday of each week via an electronic funds transfer program (the "EFT Program") under which we automatically deduct such amounts from your bank account.
To make arrangements for EFT, you must sign our then-current form of Electronic Funds Withdrawal Authorization, the current version of which is Exhibit 3 to the Franchise Agreement.
You must designate a bank account for use in connection with your Bakery and deposit all Net Revenues into the designated bank account.
If we are unable to collect the Net Revenue data through the Bakery's POS System, we will process an EFT for the subject week in an amount equal to the 11% of the weekly Net Revenues for the previous week based on your point of sales system's records, which represents Royalties and advertising fees due under the Franchise Agreement, as well as any late fee and interest on past-due amounts as provided for herein.
We reserve the right to require you to pay any fees due under the Franchise Agreement by such other means and at such periods as we may specify from time to time, including any payment made to our affiliates.
With respect to third-party delivery service providers, if a provider remits to you the purchase price charged to the Guest less a commission or other fee or charge, the commission or other fee or charge will be included in the calculation of Net Revenues.
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the brand collects royalty and advertising fees weekly through an electronic funds transfer (EFT) program. Franchisees are required to input all sales data into the Bakery's POS system, providing Nothing Bundt Cakes with net revenue data. This data, certified as true and correct by the franchisee, is electronically submitted weekly.
Nothing Bundt Cakes reviews the provided net revenues data and deducts the required royalty and advertising fees. These deductions are currently processed on Tuesdays via the EFT Program, automatically withdrawing the amounts from the franchisee's designated bank account. Franchisees must sign an Electronic Funds Withdrawal Authorization form to participate in the EFT program and deposit all net revenues into the designated bank account.
If Nothing Bundt Cakes cannot collect net revenue data through the POS system, they will process an EFT for 11% of the previous week's net revenues, based on the point of sales system's records. This 11% covers royalties and advertising fees, along with any late fees and interest on past-due amounts. Nothing Bundt Cakes retains the right to change the payment method and frequency for fees, potentially including payments to their affiliates. The franchise agreement specifies that commissions or fees charged by third-party delivery service providers are included in the calculation of net revenues.