What is a 'Cooperative' in the context of a Nothing Bundt Cakes franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
designated vendor at least 15 business days prior to publication or use. Any amounts a franchisee spends on local marketing are separate from and do not offset or reduce the franchisee's contributions to the Production Fund and Media Fund.
We have the right to designate any geographical area for purposes of establishing a regional advertising and promotional cooperative ("Cooperative"), and to determine whether a Cooperative is applicable to your Bakery. If a Cooperative is established applicable to your Bakery, you must participate in and contribute to the Cooperative. Each Cooperative will be organized for the exclusive purpose of administering regional advertising programs and developing, subject to our approval, standardized advertising materials for use by the members in local advertising. No promotional or advertising plans or materials may be used by a Cooperative or furnished to its members without our prior written approval. All such plans and materials will be submitted to us for approval. Cooperative contributions will be credited towards either your Production Fund contributions and/or your Media Fund contributions, as we shall decide. We may grant to any franchisee, in our sole discretion, an exemption for any length of time from the requirement of membership in a Cooperative, upon written request of such franchisee stating reasons supporting such exemption. Our decision concerning such request for an exemption will be final. Upon the request of a franchisee in the Cooperative, the Cooperative will provide that franchisee a copy of the bill for advertising that the Cooperative received.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 42–52)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, a Cooperative is a regional advertising and promotional cooperative that Nothing Bundt Cakes may establish for a specific geographical area. If Nothing Bundt Cakes establishes a Cooperative applicable to a franchisee's Bakery, the franchisee must participate in and contribute to it.
The purpose of each Cooperative is to administer regional advertising programs and develop standardized advertising materials for its members' local advertising, subject to Nothing Bundt Cakes' approval. No promotional or advertising plans or materials can be used by a Cooperative or provided to its members without prior written approval from Nothing Bundt Cakes. All plans and materials must be submitted for approval.
Contributions to the Cooperative may be credited towards a franchisee's Production Fund and/or Media Fund contributions, as determined by Nothing Bundt Cakes. Nothing Bundt Cakes may grant a franchisee an exemption from Cooperative membership for any length of time, upon written request from the franchisee stating the reasons for the exemption. The decision regarding the exemption is final. Upon request, the Cooperative will provide a franchisee with a copy of the advertising bill received by the Cooperative. Neither Nothing Bundt Cakes nor the Cooperative will prepare an annual accounting of these funds.