Are contributions to the Nothing Bundt Cakes Media Fund optional?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | Net Revenues (see Note 3) | | | | Paid Media Fund (the "Media Fund") | Combined contributions made by you for the Media Fund and the Production Fund will be 5% of your weekly Net Revenues (see Note 3) | Due on Tuesday of each week on Net Revenues during previous week ending Sunday | See Item 11 for a detailed discussion of the Media Fund. Contributions to the Media Fund (the "Media Fund Fee") must be paid by EFT. | | Local Cooperative Fund | If we designate a Cooperative Fund for your Territory, you must participate in the Cooperative Fund, and your contributions will be credited towards your Production Fund contribution requirements | Must be spent monthly | If we designate a local cooperative fund ("Cooperative") for your Territory, you must participate and your contributions to the Cooperative will be credited towards your required Production Fund contribution. | | Training for Additional or Replacement Operators | $2,500 per person, plus expenses, but could increase if our costs increase | Beginning of training | We provide initial training for two people at no additional cost (see Item 11). You must pay this amount for any additional or replacement Operator that you hire. You must also pay all expenses your trainee incurs, including travel, lodging, meals and applicable wages. You must at all times have a full-time Operator certified by us to operate the Bakery. | | Additional Training or Assistance during Franchise Term | Our then-current fee, currently $300 per trainer per day plus expenses for training at our location; $500 per day plus expenses for training in your Territory; but could increase if our costs increase | When training or assistance begins | A day is 8 hours of work at the location. Travel time is billed separately on an hourly basis. | | Renewal | 50% of our then current Initial Franchise Fee | Upon request for renewal of your franchise | | | Transfer in the event of a sale of the Bakery | $10,000 transfer fee, plus $5,000 for transfer opening advertising campaign, | Upon request for transfer | You must obtain our approval in connection with any transfer of the Bakery.
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, contributions to the Media Fund are not optional. The table in Item 6 outlines various fees, including the Paid Media Fund fee, which is a combined contribution for both the Media Fund and the Production Fund. This combined contribution is set at 5% of weekly Net Revenues. Franchisees are required to pay this fee weekly via EFT (Electronic Funds Transfer).
Furthermore, if Nothing Bundt Cakes designates a Cooperative Fund for a franchisee's territory, participation is mandatory. Contributions to the Cooperative Fund will then be credited towards the franchisee's Production Fund contribution requirements. This indicates that while there might be a slight variation in how the funds are allocated (between the Media Fund, Production Fund, and Cooperative Fund), contributing to the designated funds is a requirement, not an option.
Additionally, the Franchise Agreement stipulates that if the agreement is terminated for cause before its scheduled expiration, the franchisee must pay liquidated damages. These damages are calculated based on the average Royalties, Marketing Production Fund contributions, and Paid Media Fund contributions. The inclusion of Media Fund contributions in this calculation further emphasizes the mandatory nature of these payments during the franchise term. Therefore, a prospective Nothing Bundt Cakes franchisee should plan to consistently allocate 5% of their weekly Net Revenues to these marketing-related funds.