Is local advertising required for Nothing Bundt Cakes franchisees?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
We no longer require our franchisees to pay a local advertising fee. Local advertising is no longer required under the Franchise Agreement. It is up to each franchisee to decide whether it wants to undertake local advertising at its own expense. If you do participate in local advertising, there are a number of obligations you must comply with, all of which are described in the Franchise Agreement: (i) you may only actively advertise the Bakery, the Products, and the System exclusively in your territory; (ii) you may not advertise or promote your Bakery outside of your territory without our written consent, which we may withhold or condition at our discretion or revoke at any time and for any reason; (iii) any advertising you plan to undertake must be approved by us and if you receive our approval, you must work with us or our designated third-party vendor to develop your local media campaign at your cost and expense; and (iv) you must submit samples of all sales, promotional, and advertising materials you wish to use including print, radio and television advertising, signage, supplies and packaging, to us and our designated vendor at least 15 business days prior to publication or use. Any amounts a franchisee spends on local marketing are separate from and do not offset or reduce the franchisee's contributions to the Production Fund and Media Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 42–52)
What This Means (2025 FDD)
According to Nothing Bundt Cakes's 2025 Franchise Disclosure Document, franchisees are not required to participate in local advertising. The FDD states that it is up to each franchisee to decide whether they want to undertake local advertising at their own expense. However, if a franchisee chooses to participate in local advertising, they must comply with certain obligations outlined in the Franchise Agreement.
These obligations include advertising the Bakery, Products, and System exclusively within their territory, and obtaining written consent from Nothing Bundt Cakes before advertising outside of their territory. All advertising plans must be approved by Nothing Bundt Cakes, and franchisees must work with Nothing Bundt Cakes or their designated third-party vendor to develop their local media campaign at their own cost. Franchisees must also submit samples of all sales, promotional, and advertising materials to Nothing Bundt Cakes and their designated vendor at least 15 business days prior to publication or use.
It is important to note that any amounts a franchisee spends on local marketing are separate from and do not offset or reduce the franchisee's contributions to the Production Fund and Media Fund. Nothing Bundt Cakes also has the right to designate geographical areas for regional advertising and promotional cooperatives, in which case franchisees must participate and contribute to the Cooperative. These contributions will be credited towards the franchisee's Production Fund and/or Media Fund contributions, as determined by Nothing Bundt Cakes.