factual

How will a Nothing Bundt Cakes franchisee be compensated for orders fulfilled through 3PD Providers?

Nothing_Bundt_Cakes Franchise · 2025 FDD

Answer from 2025 FDD Document

Subject to additional procedures, rules and policies adopted by us, 3PD Providers will collect all funds from Guests ordering through their online platforms. The 3PD Providers will remit to the franchisee the purchase price for the products purchased less the 3PD Provider's commission and other fees and charges. We reserve the right to amend, modify and even terminate any 3PD Provider or 2PD program, but you are obligated to participate in any such Provider program in accordance with its current terms as long as it remains in effect.

Source: Item 12 — TERRITORY (FDD pages 52–58)

What This Means (2025 FDD)

According to the 2025 Nothing Bundt Cakes FDD, when a franchisee fulfills orders through third-party delivery service providers (3PD Providers), the 3PD Providers collect all funds from guests ordering through their online platforms. The 3PD Providers then remit the purchase price for the products to the franchisee, after deducting their commission, fees, and charges. This means the franchisee will receive the revenue from the sale, minus the costs associated with using the 3PD Provider's services. Franchisees are obligated to participate in any 3PD Provider program according to its current terms as long as it remains in effect.

Nothing Bundt Cakes retains the right to modify or terminate any 3PD Provider program, but franchisees are obligated to participate in any such program in accordance with its current terms as long as it remains in effect. Franchisees are required to sign agreements directly with 3PD Providers, if required, governing their participation in the 3PD Provider and 2PD program and will be bound by the terms and conditions of Nothing Bundt Cakes' agreements with each of the 3PD Providers.

This arrangement means that while franchisees gain access to a broader customer base through 3PD Providers, they must also factor in the costs associated with these services when calculating their profit margins. It's important for prospective franchisees to understand the commission structures, fees, and charges imposed by the 3PD Providers to accurately assess the financial implications of participating in these programs. Franchisees should also be aware that Nothing Bundt Cakes can change the terms of the E-Commerce Program, including the approved e-commerce platforms, vendors, and methods and times for payment, at its discretion.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.