For Nothing Bundt Cakes, what is included in the definition of 'Net Revenues' for royalty calculation purposes?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of Bakery's weekly Net Revenues | Due on Tuesday of each week on Net Revenues during previous week ending Sunday | "Net Revenues" mean all of your revenue from operating your Bakery, including delivery, shipping, and E-Commerce Revenues, revenues paid to you by any third-party delivery provider in connection with delivery services related to your Bakery and revenues made from sales to National Accounts (See Item 11), but excluding taxes collected from Guests and paid to taxing authorities and reduced by amount of any documented refunds, credits, allowances, and charge-backs made by the Bakery in accordance with our standards and specifications. All royalty payments must be made by EFT. (See Note 2 for more information) |
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, "Net Revenues" for royalty calculation includes all revenue from operating the bakery. This encompasses revenue from delivery, shipping, E-Commerce, payments from third-party delivery providers, and sales to National Accounts.
However, the definition of "Net Revenues" excludes taxes collected from guests that are then paid to taxing authorities. It is also reduced by the amount of any documented refunds, credits, allowances, and charge-backs made by the bakery, provided these are in accordance with Nothing Bundt Cakes' standards and specifications.
Nothing Bundt Cakes calculates the royalty fee as 6% of the bakery's weekly Net Revenues. This amount is due every Tuesday for the Net Revenues earned during the previous week, which ends on Sunday. All royalty payments must be made via Electronic Funds Transfer (EFT).