Why were two Nothing Bundt Cakes bakeries excluded from the Year 1 Net Revenues data?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Bakery Sales by Ramp Year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
|---|---|---|---|---|---|---|
| # of Bakeries | 310 | 232 | 181 | 135 | 91 | 43 |
| Avg Net Revenues | $962 | $1,040 | $1,135 | $1,242 | $1,316 | $1,494 |
| Median Net Revenues | $910 | $998 | $1,089 | $1,175 | $1,249 | $1,332 |
| Lowest Net Revenues | $293 | $429 | $560 | $604 | $660 | $790 |
| Highest Net Revenues | $2,481 | $2,274 | $2,324 | $2,477 | $2,365 | $2,634 |
| # Met or Exceed Avg | 135 | 99 | 78 | 59 | 40 | 16 |
| % Met or Exceed Avg | 44% | 43% | 43% | 44% | 44% | 37% |
Footnote:
- There were 2 Bak
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 71–80)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes FDD, two bakeries were excluded from the Year 1 Net Revenues data because they had $0 in Net Revenues in April 2020 due to COVID-19 restrictions. However, the FDD notes that these two bakeries were included in Years 4 and 5 of the Net Revenues data since they reported revenues for those years. One of the bakeries is located in Pennsylvania, and the other is located in Maine.
This exclusion indicates that Nothing Bundt Cakes made adjustments to account for the impact of external factors like the COVID-19 pandemic on initial revenues. By excluding these bakeries' first-year data, Nothing Bundt Cakes aimed to provide a more representative picture of typical first-year performance for prospective franchisees, as the pandemic significantly disrupted business operations during that period.
For a potential franchisee, this information highlights the importance of understanding the context behind the financial performance data presented in the FDD. While the first-year revenues of these two bakeries were not included due to specific circumstances, their subsequent performance was considered relevant and included in later years' data. This suggests that while initial challenges may arise, the Nothing Bundt Cakes franchise system anticipates a recovery and sustained operation over time.
It is important to note that the FDD includes data from a specific period and that future economic conditions or unforeseen events could impact a new bakery's performance. Therefore, prospective franchisees should conduct their own due diligence and consider various factors, including local market conditions and potential risks, before making a final investment decision.