As a Nothing Bundt Cakes franchisee, am I required to pay E-Commerce Program fees?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
The grant of a franchise includes the right, but also the obligation to engage in e-commerce through our E-Commerce Program which includes our Website, our 2PD program, and other e-commerce platforms approved by us including, but not limited to, 3PD platforms. Pursuant to the E-Commerce Program, you must fulfill online orders Guests place which require pick-up, delivery, or shipping within your Territory pursuant to the terms we negotiate. You are required to offer delivery on the Website and other e-commerce platforms approved by us as well as offer delivery for phone and walk-in orders. The Bakery selected to fulfill an E-Commerce Program order will be determined solely by us or the third-party platform in accordance with algorithms that evaluate a number of different factors. Franchisees have no right to object or contest any decision made by us with respect to the Bakery selected to fulfill orders. All Guest payments will be remitted directly to the franchisee's designated bank account, net of any vendor's then-current credit card processing or other fees (the "Vendor Fee") and gateway fees, to administer the platform and process payments, which are subject to change. We have the right to change the products and services offered through any E-Commerce Program and the suggested retail price for such goods. We may prohibit a franchisee from participating in the E-Commerce Program if the franchisee is not compliant with the terms of the E-Commerce Program, its franchise agreement, the Operations Manual, or any other agreement with us or our affiliates and subsidiaries. We may change the user terms, approved e-commerce platforms, our vendors, and methods and times for payment under the E-Commerce Program at our discretion. If a franchisee refuses or fails to fulfill e-commerce orders, fails to offer delivery, fails to deliver goods or services meeting our standards and specifications, or is otherwise not in material compliance with its obligations under its franchise agreement, we may allow a Bakery outside of the franchisee's territory to fulfill the orders without any compensation, reimburse the Guest, provide gift certificates, or otherwise remedy the situation, and the franchisee will be responsible for our costs in doing so. As a franchisee, you must pay us or our designated supplier the then-current E-Commerce Program fees associated with building and maintaining the Website or other platform and fulfilling Guest orders. We may require a franchisee to ship cakes from your Bakery to locations outside of your Territory.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, franchisees are obligated to participate in the E-Commerce Program and are required to pay associated fees. This program includes the Nothing Bundt Cakes website, the 2PD program, and other approved e-commerce platforms, including 3PD platforms. As part of this program, franchisees must fulfill online orders for pick-up, delivery, or shipping within their territory, and are required to offer delivery on the website and other approved e-commerce platforms, as well as for phone and walk-in orders. Franchisees do not have the right to object to decisions regarding which bakery fulfills an order. Payments from guests will be remitted directly to the franchisee's bank account, minus vendor fees for credit card processing and gateway fees. These fees are subject to change.
Nothing Bundt Cakes retains the right to modify the products and services offered through the E-Commerce Program, as well as the suggested retail prices. Franchisees who fail to comply with the terms of the E-Commerce Program, the franchise agreement, the operations manual, or any other agreement with Nothing Bundt Cakes may be prohibited from participating in the program. The company may also change the user terms, approved e-commerce platforms, vendors, and payment methods at its discretion. If a franchisee fails to fulfill e-commerce orders or meet the required standards, Nothing Bundt Cakes may allow a bakery outside of the franchisee's territory to fulfill the orders, reimburse the guest, or provide gift certificates, with the franchisee being responsible for the associated costs.
As a franchisee, you must pay Nothing Bundt Cakes or its designated supplier the then-current E-Commerce Program fees for building and maintaining the website or other platform and fulfilling guest orders. Nothing Bundt Cakes may also require franchisees to ship cakes from their bakery to locations outside of their territory. These fees are in addition to other fees outlined in the FDD, such as the initial franchise fee, royalty fees, and marketing fees. The E-Commerce Program fees contribute to the overall cost of operating a Nothing Bundt Cakes franchise and should be carefully considered by prospective franchisees.