Can the unapproved supplier fee charged by Nothing Bundt Cakes increase?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
or otherwise in writing from time to time. You acknowledge that we, our affiliates, and/or a third party may be one of several, or the only, approved supplier of any item. You further acknowledge and agree that we and/or our affiliates have the right to receive a rebate and/or realize a profit on any items that we, our affiliates, or our approved and designated suppliers supply to you. In addition to our right to terminate this Agreement if you fail to purch
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the unapproved supplier fee can increase for repeated violations. If a franchisee purchases from an unapproved supplier after receiving notice from Nothing Bundt Cakes to cease doing so, they must pay the current unapproved supplier fee, which is $250 per day. However, this fee is subject to increase if the franchisee repeatedly violates the supplier policy.
This policy means that a Nothing Bundt Cakes franchisee could face escalating costs for non-compliance with the brand's approved supplier requirements. While a single violation incurs a fixed daily fee, repeated violations can lead to a higher, unspecified fee. This incentivizes franchisees to adhere to the approved supplier list and seek approval for alternative suppliers to avoid potential cost increases.
It is common practice in franchising for franchisors to have approved supplier programs to maintain quality control and brand consistency. Franchisees are typically required to purchase goods and services from these approved suppliers. The ability for Nothing Bundt Cakes to increase the unapproved supplier fee acts as a deterrent and ensures franchisees comply with the brand's standards and specifications.