What does it mean for the Carvel system to be an 'Affiliated Program' in relation to Nothing Bundt Cakes?

According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, 'Affiliated Programs' refers to other franchise systems that share an affiliation with Nothing Bundt Cakes through common ownership by private equity funds managed by Roark Capital Management, LLC. Specifically, Carvel became an Affiliated Program of Nothing Bundt Cakes in October 2001 and became affiliated with GoTo Foods in November 2004.

This means that while Nothing Bundt Cakes and Carvel are separate franchise systems, they are under the same umbrella of ownership. However, the FDD explicitly states that none of these affiliates operate a Nothing Bundt Cakes franchise. Carvel franchises Carvel® ice cream shoppes and is a leading retailer of branded ice cream cakes in the United States and a producer of premium soft-serve ice cream. Carvel's predecessor began franchising retail ice cream shoppes in 1947. As of December 31, 2024, there were 336 franchised Carvel shoppes in the United States and 39 franchised Carvel shoppes outside the United States.

For a prospective Nothing Bundt Cakes franchisee, this affiliation might offer certain benefits or synergies, such as shared resources or best practices across the affiliated brands. However, it's important to note that the FDD does not elaborate on any specific operational impacts or advantages resulting from this affiliation. The franchisee should inquire about any potential cross-promotional opportunities, shared vendor relationships, or other collaborative initiatives that may exist due to this affiliation.

It is also important to understand that while there is common ownership, each franchise operates independently. The franchisee's agreement is solely with Nothing Bundt Cakes, and the success of their bakery will depend on the Nothing Bundt Cakes system, not on the performance or practices of Carvel or any other affiliated program.