For a Nothing Bundt Cakes franchise, what does the estimated initial investment for the first Bakery include?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This figure represents the total estimated initial investment required to open the first Bakery (Prototype) under your first Franchise Agreement, which includes leases and security deposits, buildout costs, signage costs, training expenses, miscellaneous opening costs, opening inventory, the Opening Advertising Fee, and additional operational funds for a single Bakery (see the Single Unit in Item 7A chart above for additional details). This amount includes the $45,000 initial Franchise Fee because that is included in the Initial Investment for the First Bakery.
| Type of Expenditure | Amount | When Due | Method of Payment | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $45,000 | Upon signing Franchise Agreement | Lump Sum | Us |
| Rent and Security | $0 to 13,000 | As Incurred | As Agreed | Landlord; Utility |
| Deposit (2) | Companies | |||
| Bakery Improvements (3) | $275,000 to $350,000 | As Incurred | As Agreed | Landlord; Outside Suppliers |
| Architect – Design (4) | $11,000 to $13,000 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Fixtures and Equipment – Front and Back of Bakery (5) | $200,000 to $275,000 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Exterior Signage (6) | $7,500 to $15,000 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Initial Inventory (7) | $25,000 | As Incurred | ACH Upon Shipment of Product or As Agreed | NBC Distribution and Approved Suppliers |
| Point of Sale System (8) | $7,800 to $12,500 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Insurance (9) | $2,800 to $5,500 | As Incurred | As Incurred | Insurance Company |
| Type of Expenditure | Amount | When Due | Method of Payment | To Whom Payment is to be Made |
| ------------------------------------------------------------------------------------------------------------------------- | ------------------------ | ------------- | ---------------------- | ------------------------------------- |
| Business License | $1,500 to $10,000 | As Incurred | As Incurred | Government |
| and Permits (10) | Agencies | |||
| Professional Fees | $2,500 to $7,500 | As Incurred | As Agreed | Attorney, |
| (11) | Accountant | |||
| Opening | $10,000 to $15,000 | As Incurred | As Incurred | Us |
| Advertising | ||||
| (12) | ||||
| Program | ||||
| Training Expenses | $3,500 to $10,000 | As Incurred | As Incurred | Third Parties |
| (13) | ||||
| Delivery Vehicle Monthly lease or loan payment (14) | $500 to $35,000 | As Incurred | As Incurred | Third party vendors |
| Additional Funds | $75,000 | As Incurred | As Incurred | Employees and |
| 3 months (15) | Suppliers | |||
| TOTAL | $667,100 to $906,500 | |||
| ESTIMATED | ||||
| INITIAL | ||||
| INVESTMENT | ||||
| (including lease | ||||
| costs but not real | ||||
| estate purchase | ||||
| costs) (16) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–36)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the total estimated initial investment to open the first bakery ranges from $667,100 to $906,500. This investment encompasses various components, including the initial franchise fee of $45,000, rent and security deposit which can range from $0 to $13,000, and bakery improvements estimated between $275,000 and $350,000. Additionally, the investment covers architect design fees ranging from $11,000 to $13,000, fixtures and equipment for both the front and back of the bakery, costing between $200,000 and $275,000, and exterior signage expenses ranging from $7,500 to $15,000.
Further, the initial investment for a Nothing Bundt Cakes franchise includes the initial inventory, which costs approximately $25,000, the point-of-sale (POS) system, with an estimated cost between $7,800 and $12,500, and insurance expenses ranging from $2,800 to $5,500. Business licenses and permits are also factored in, with costs varying from $1,500 to $10,000, alongside professional fees estimated between $2,500 and $7,500. An opening advertising program requires an investment of $10,000 to $15,000, and training expenses range from $3,500 to $10,000.
The initial investment for a Nothing Bundt Cakes franchise also considers the cost of a delivery vehicle, with monthly lease or loan payments ranging from $500 to $35,000, and additional funds for the first three months of operation, amounting to $75,000. These additional funds are intended to cover expenses such as payroll and supplier costs. It's important to note that these figures are estimates, and actual costs may vary based on factors such as the franchisee's creditworthiness, local market conditions, and managerial capabilities. The estimate includes lease costs but not real estate purchase costs. The initial franchise fee is non-refundable.