On what day of the week is the Nothing Bundt Cakes royalty fee due?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
3.4 Manner of Payment
Presently, the Royalty is collected on Tuesday of each week via an electronic funds transfer program (the "EFT Program") under which we automatically deduct the Royalty, advertising fees due to us, and any other amounts owed to us under this Agreement, or any other agreement between you and us from your bank account. You must deposit all Net Revenues from the operation of your Bakery into a designated bank account subject to the EFT Program within one (1) business day after receipt, including cash, checks, and credit card receipts. Prior to opening, you must provide us with your bank's name, address and account number, a voided check from the bank account, and sign and give to us and your bank all documents, including Exhibit 3 to this Agreement, necessary to effectuate the EFT Program and our ability to withdraw funds from such bank account via electronic funds transfer ("EFT"). You must immediately notify us of any change in your banking relationship, including changes in account numbers. 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 POS System's records, which represents Royalties and advertising fees due under this 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 this Agreement by such other means and at such periods as we may specify from time to time, including making any payment directly to our affiliates.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, royalty fees are collected each week on Tuesday. These payments are collected through an electronic funds transfer (EFT) program. This program automatically deducts the royalty fee, advertising fees, and any other amounts owed to Nothing Bundt Cakes from the franchisee's bank account.
To facilitate these payments, franchisees must deposit all net revenues from their bakery's operation into a designated bank account that is subject to the EFT Program. This deposit should occur within one business day of receiving the revenue, including cash, checks, and credit card receipts. Before opening their Nothing Bundt Cakes bakery, franchisees must provide the franchisor with their bank's name, address, account number, and a voided check from the bank account. They also need to sign and provide all necessary documents to both the franchisor and their bank to enable the EFT program and allow Nothing Bundt Cakes to withdraw funds electronically.
If Nothing Bundt Cakes is unable to collect the net revenue data through the bakery's point-of-sale (POS) system, they will process an EFT for the week. The amount will be equal to 11% of the weekly net revenues from the previous week, based on the POS system's records. This 11% represents the royalties and advertising fees due, as well as any late fees and interest on past-due amounts. However, Nothing Bundt Cakes retains the right to require franchisees to pay any fees due under the agreement through other means and at different periods, including making payments directly to their affiliates.