What is the purpose of the Media Fund for Nothing Bundt Cakes franchisees?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in Item 6, in addition to the Production Fund, we established the Media Fund to which you are obligated to contribute in the amount as set forth below. Contributions to the Media Fund are due and payable at the same time and in the same manner as the Royalty due under this Agreement or in such other manner as we may periodically specify. The Media Fund contributions shall be used, in our sole discretion, to satisfy any and all costs of placing paid media including, but not limited to, broadcast, print, place-based, digital, social, and other media (collectively, "Paid Media"). We have the right to use the Media Fund for Paid Media to be distributed nationally, regionally, and/or locally, as we determine will be in the general best interests of the System, without any obligation to obtain your approval or the approval of any other franchisee. Furthermore, we do not undertake any obligation to ensure that all System franchisees will benefit directly or on a pro rata basis from the Media Fund expenditures.
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' 2025 Franchise Disclosure Document, the Media Fund is used to cover the costs of placing paid media. These media placements can include broadcast, print, place-based, digital, social, and other media. The fund is managed at the sole discretion of Nothing Bundt Cakes, and they determine how the money is spent on national, regional, and local levels.
Nothing Bundt Cakes has no obligation to ensure that all franchisees benefit directly or proportionally from the Media Fund expenditures. This means that while the fund aims to benefit the entire Nothing Bundt Cakes system, individual franchisees may not see direct returns on their contributions.
Contributions to the Media Fund are due at the same time and in the same manner as royalty payments, unless Nothing Bundt Cakes specifies otherwise. In 2024, 71.7% of the combined contributions to the Media Fund and Production Fund were spent on paid media. This fund is separate from the Production Fund, which is used for developing marketing and advertising programs.