When is the renewal fee due for a Nothing Bundt Cakes franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
on Net Revenues during previous week ending Sunday | See Item 11 for a detailed discussion of the Production Fund. Contributions to the Production Fund (the "Production Fund Fee") must be paid by EFT. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Net Revenues (see Note 3) | |||
| Paid Media Fund (the "Media Fund") | Combined contributions made by you for the Media Fund and the Production Fund will be 5% of your weekly Net Revenues (see Note 3) | Due on Tuesday of each week on Net Revenues during previous week ending Sunday | See Item 11 for a detailed discussion of the Media Fund. Contributions to the Media Fund (the "Media Fund Fee") must be paid by EFT. |
| Local Cooperative Fund | If we designate a Cooperative Fund for your Territory, you must participate in the Cooperative Fund, and your contributions will be credited towards your Production Fund contribution requirements | Must be spent monthly | If we designate a local cooperative fund ("Cooperative") for your Territory, you must participate and your contributions to the Cooperative will be credited towards your required Production Fund contribution. |
| Training for Additional or Replacement Operators | $2,500 per person, plus expenses, but could increase if our costs increase | Beginning of training | We provide initial training for two people at no additional cost (see Item 11). You must pay this amount for any additional or replacement Operator that you hire. You must also pay all expenses your trainee incurs, including travel, lodging, meals and applicable wages. You must at all times have a full-time Operator certified by us to operate the Bakery. |
| Additional Training or Assistance during Franchise Term | Our then-current fee, currently $300 per trainer per day plus expenses for training at our location; $500 per day plus expenses for training in your Territory; but could increase if our costs increase | When training or assistance begins |
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to Nothing Bundt Cakes's 2025 Franchise Disclosure Document, the renewal fee is due upon request for renewal of your franchise. The renewal fee is 50% of the then-current Initial Franchise Fee. This means that a franchisee seeking to renew their agreement with Nothing Bundt Cakes must pay this fee at the time they formally request to extend the franchise term.
Franchise agreements typically have a set term, and renewal is not automatic. The franchisee must apply for a renewal, and the franchisor has the right to approve or deny the request based on factors like the franchisee's compliance with the agreement and the brand's strategic direction. The 'then current Initial Franchise Fee' means the renewal fee amount will depend on what Nothing Bundt Cakes is charging new franchisees at the time of renewal, not what the franchisee originally paid.
For a prospective Nothing Bundt Cakes franchisee, it's important to factor in the potential cost of renewal when evaluating the long-term financial viability of the franchise. They should also understand the conditions under which Nothing Bundt Cakes might deny a renewal request, as this could significantly impact their investment. It is also important to note that the renewal fee could increase if the initial franchise fee increases.