What is the typical security deposit amount for a Nothing Bundt Cakes lease?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
| Type of Expenditure | Amount | When Due | Method of Payment | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $45,000 | Upon signing Franchise Agreement | Lump Sum | Us |
| Rent and Security | $0 to 13,000 | As Incurred | As Agreed | Landlord; Utility |
| Deposit (2) | Companies | |||
| Bakery Improvements (3) | $275,000 to $350,000 | As Incurred | As Agreed | Landlord; Outside Suppliers |
| Architect – Design (4) | $11,000 to $13,000 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Fixtures and Equipment – Front and Back of Bakery (5) | $200,000 to $275,000 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Exterior Signage (6) | $7,500 to $15,000 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Initial Inventory (7) | $25,000 | As Incurred | ACH Upon Shipment of Product or As Agreed | NBC Distribution and Approved Suppliers |
| Point of Sale System (8) | $7,800 to $12,500 | As Incurred | As Agreed | Designated or Approved Suppliers |
| Insurance (9) | $2,800 to $5,500 | As Incurred | As Incurred | Insurance Company |
| Type of Expenditure | Amount | When Due | Method of Payment | To Whom Payment is to be Made |
| ------------------------------------------------------------------------------------------------------------------------- | ------------------------ | ------------- | ---------------------- | ------------------------------------- |
| Business License | $1,500 to $10,000 | As Incurred | As Incurred | Government |
| and Permits (10) | Agencies | |||
| Professional Fees | $2,500 to $7,500 | As Incurred | As Agreed | Attorney, |
| (11) | Accountant | |||
| Opening | $10,000 to $15,000 | As Incurred | As Incurred | Us |
| Advertising | ||||
| (12) | ||||
| Program | ||||
| Training Expenses | $3,500 to $10,000 | As Incurred | As Incurred | Third Parties |
| (13) | ||||
| Delivery Vehicle Monthly lease or loan payment (14) | $500 to $35,000 | As Incurred | As Incurred | Third party vendors |
| Additional Funds | $75,000 | As Incurred | As Incurred | Employees and |
| 3 months (15) | Suppliers | |||
| TOTAL | $667,100 to $906,500 | |||
| ESTIMATED | ||||
| INITIAL | ||||
| INVESTMENT | ||||
| (including lease | ||||
| costs but not real | ||||
| estate purchase | ||||
| costs) (16) |
[Item 7: ESTIMATED INITIAL INVESTMENT]
| Type of Expenditure | Amount | When Due | Method of Payment | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $45,000 | Upon signing Franchise Agreement | Lump Sum | Us |
| Rent and Security | $0 to 14,500 | As Incurred | As Agreed | Landlord; Utility |
| Deposit (2) | Companies | |||
| Bakery Improvements (3) | $275,000 to $450,000 | As Incurred | As Agreed | Landlord; Outside Suppliers |
| Architect – Design (4) | $11,000 to $13,000 | As Incurred | As Agreed | Designated or Approved Suppliers |
[Item 7: ESTIMATED INITIAL INVESTMENT]
Rent and Security Deposit.
Our Bakery prototype will occupy approximately 1,600 sq. ft. to 1,800 sq. ft., although you may opt to lease a larger space.
Your rent will depend on geographic location, the Bakery's size, local rental rates, businesses in the area, site profile and desirability, and other factors.
Bakery locations are typically on busy retail streets, in strip shopping centers, and other venues in retail, commercial and suburban areas.
The location should have adequate facilities to bake, store, and prepare your products and their ingredients and to service your walk-in Guests.
The location should be visible, accessible to prospective Guests, and conveniently located to make deliveries in your Territory.
The amounts listed above reflect one month's rent and a security deposit, which typically equals one month's rent and contemplate that some franchisees are able to negotiate free rent allowances with their landlords.
Depending on your local jurisdiction, water tap, sewer tap and other similar fees may be required.
These fees are not included in our estimate and you should determine if you will have to pay these fees, and the amount of such fees, before you purchase the franchise.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–36)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the estimated initial investment for rent and security deposit ranges from $0 to $13,000 for a bakery size of 1,600 sq. ft. to 1,800 sq. ft. and $0 to $14,500 for a larger bakery. The document notes that the security deposit typically equals one month's rent; however, some franchisees may negotiate free rent allowances with their landlords, which would affect this amount. These fees are paid as incurred and as agreed upon with the landlord and utility companies.
Several factors can influence the rent and security deposit amount. These include the geographic location, the bakery's size, local rental rates, nearby businesses, site profile and desirability. Nothing Bundt Cakes locations are typically situated on busy retail streets, in strip shopping centers, and other retail, commercial, and suburban areas. The location must have adequate facilities for baking, storage, and preparation, as well as service for walk-in guests. The location should also be visible, accessible, and conveniently located for deliveries within the franchisee's territory.
The FDD advises that water tap, sewer tap, and other similar fees may be required depending on the local jurisdiction. These fees are not included in the estimated costs, and prospective franchisees should determine if they will have to pay these fees and the amount of such fees before purchasing the franchise. The leasehold improvement ranges will also be affected by various factors, such as the location of the bakery and local market conditions. It is important to note that Nothing Bundt Cakes does not offer financing for any part of the initial investment, so franchisees must secure their own funding.