What is the current amount of the Nothing Bundt Cakes unapproved supplier fee per day?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
d designated suppliers. We will not approve an unreasonable number of suppliers if the approval might result in higher costs to System franchisees or prevent the effective or economical supervision of approved suppliers.
In addition to our right to terminate this Agreement if you fail to purchase from our designated and approved suppliers, you must pay us our then-current unapproved supplier fee, currently $250 per day, in the
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 36–40)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, if a franchisee continues to purchase from an unapproved supplier after receiving notice to stop, they must pay an unapproved supplier fee. The current fee is $250 per day. This fee is subject to change if the franchisee repeatedly violates the prohibition on using unapproved suppliers.
This policy is in place to ensure that Nothing Bundt Cakes franchisees adhere to the brand's standards and specifications for all products and services used in their bakeries. By requiring franchisees to purchase from approved suppliers, Nothing Bundt Cakes aims to maintain consistency and quality across all locations. This also allows Nothing Bundt Cakes to monitor and control the products being used, and potentially derive revenue from supplier relationships.
For a prospective franchisee, this means that deviating from the approved supplier list can result in a significant daily penalty. It is crucial to obtain written approval for any new suppliers or products before making purchases. Franchisees should also be aware that the unapproved supplier fee can change, potentially increasing the cost of non-compliance. Therefore, maintaining open communication with Nothing Bundt Cakes regarding suppliers and adhering to the approved list is essential to avoid these fees.