When are the Royalty fees due for a Nothing Bundt Cakes franchise, and how must they be paid?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | | Type of Fee | Amount | Due Date | Remarks | |------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | Net Revenues (see Note 3) | | |
Each week begins on Monday and ends on Sunday.
All Net Revenues data, which is electronically provided to us on a weekly basis through the Bakery's POS System, shall be certified to be true and correct by you.
We shall review the Net Revenues data you provide to us and shall deduct the required Royalty and advertising fees due to us under the Franchise Agreement.
Presently, these amounts are collected on Tuesday of each week via an electronic funds transfer program (the "EFT Program") under which we automatically deduct such amounts from your bank account.
To make arrangements for EFT, you must sign our then-current form of Electronic Funds Withdrawal Authorization, the current version of which is Exhibit 3 to the Franchise Agreement.
You must designate a bank account for use in connection with your Bakery and deposit all Net Revenues into the designated bank account.
If we are unable to collect the Net Revenue data through the Bakery's POS System, we will process an EFT for the subject week in an amount equal to the 11% of the weekly Net Revenues for the previous week based on your point of sales system's records, which represents Royalties and advertising fees due under the Franchise Agreement, as well as any late fee and interest on past-due amounts as provided for herein.
We reserve the right to require you to pay any fees due under the Franchise Agreement by such other means and at such periods as we may specify from time to time, including any payment made to our affiliates.
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to Nothing Bundt Cakes's 2025 Franchise Disclosure Document, Royalty fees, which are a component of the 5% of weekly Net Revenues paid toward the Media Fund, are due on Tuesday of each week. These payments cover the Net Revenues earned during the previous week, which ends on Sunday.
Nothing Bundt Cakes collects these fees through an Electronic Funds Transfer (EFT) program, automatically deducting the amounts from the franchisee's designated bank account. To facilitate this, franchisees must sign an Electronic Funds Withdrawal Authorization form and deposit all Net Revenues into the specified bank account. The FDD also states that if Nothing Bundt Cakes cannot collect the Net Revenue data through the Bakery's POS system, they will process an EFT for the subject week in an amount equal to 11% of the weekly Net Revenues for the previous week based on your point of sales system's records, which represents Royalties and advertising fees due under the Franchise Agreement, as well as any late fee and interest on past-due amounts as provided for herein.
Nothing Bundt Cakes retains the right to modify the payment method or frequency for any fees due under the Franchise Agreement. This includes the option to have franchisees make payments to Nothing Bundt Cakes's affiliates. This flexibility allows Nothing Bundt Cakes to adapt its payment processes as needed, but franchisees should be aware that the payment terms could change during the franchise term.