When must Nothing Bundt Cakes Cooperative Funds be spent?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, if Nothing Bundt Cakes designates a Cooperative Fund for a franchisee's territory, the franchisee must participate in the Cooperative Fund. The funds contributed by the franchisee will be credited towards their Production Fund contribution requirements. These Cooperative Funds must be spent monthly.
This means that a portion of the franchisee's marketing contributions may be directed to a local cooperative advertising program rather than the national media fund. This allows for more targeted, localized marketing efforts. However, participation is mandatory if Nothing Bundt Cakes establishes a Cooperative Fund for the territory.
Franchisees should inquire about the likelihood of a Cooperative Fund being established in their territory and how these funds are managed to ensure they align with their marketing strategies. Understanding the specific guidelines and requirements for participation is crucial for budgeting and marketing planning.