Is the initial franchise fee for a Nothing Bundt Cakes franchise refundable?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
litigation is required to be disclosed in this Item.
ITEM 4 BANKRUPTCY
No bankruptcy information is required to be disclosed in this Item.
ITEM 5 INITIAL FEES
Franchise Agreement
You must pay us an initial franchise fee of $45,000 when you sign a Franchise Agreement (the "Franchise Fee"). The Franchise Fee is payable in full and deemed fully earned and non-refundable upon payment. Except as provided in this Item, the Franchise Fee is uniform to all franchisees in our System. We do not offer financing for the Franchise Fee.
Development Rights Rider
If you sign our Development Rights Rider because you agree to develop multiple Bakeries in a designated area, each Bakery to be developed under the Development Rights Rider will have an initial Franchise Fee of $45,000. Upon executing the Development Rights Rider, you will be required to pay us $45,000 for the first Bakery, plus 50% of the initial Franchise Fee of $45,000 for each additional Bakery you committed to develop with the balance of the initial Franchise Fee ($22,500) to be paid when you sign a franchise agreement for each additional Bakery. Fees paid and payable to us under the Development Rights Rider are non-refundable. .
Initial Purchases
You must purchase certain items from NBC Distribution before your Bakery opens for business, including cake design accessories, dry cake mixes and other ingredients, smallwares and other supplies that are distributed through NBC Distribution. We estimate the cost of these items to be approximately $16,034. This amount is not refundable.
In addition, you must pay to us the sum of $10,000 to be spent by us for your grand opening advertising program campaign (the "Opening Advertising Program").
Source: Item 5 — INITIAL FEES (FDD pages 22–23)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the initial franchise fee of $45,000 is non-refundable once paid. This fee is deemed fully earned by Nothing Bundt Cakes upon payment. This policy applies uniformly to all franchisees, with no financing offered for the initial franchise fee. Therefore, a prospective franchisee should be aware that this $45,000 fee is non-refundable under any circumstances.
For franchisees who sign a Development Rights Rider to develop multiple Nothing Bundt Cakes bakeries, the initial franchise fee is also $45,000 for each bakery. When executing the Development Rights Rider, the franchisee must pay $45,000 for the first bakery, plus 50% of the $45,000 initial franchise fee for each additional bakery they commit to develop. The balance of the initial franchise fee ($22,500) is paid when the franchisee signs a franchise agreement for each additional bakery. Similar to the standard franchise agreement, all fees paid under the Development Rights Rider are non-refundable.
In addition to the initial franchise fee, franchisees must purchase certain items from NBC Distribution before opening their bakery, with an estimated cost of approximately $16,034. This amount is also non-refundable. Franchisees must also pay Nothing Bundt Cakes $10,000 for the grand opening advertising program campaign, which is also non-refundable. Prospective franchisees should carefully consider these non-refundable fees and ensure they have sufficient capital before entering into a franchise agreement with Nothing Bundt Cakes.