Can the unapproved supplier fee charged by Nothing Bundt Cakes increase for repeated violations?
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 continues to purchase from an unapproved supplier after receiving notice from Nothing Bundt Cakes to stop, they must pay an unapproved supplier fee. The FDD states that the current unapproved supplier fee is $250 per day.
This fee is subject to increase if the franchisee repeatedly violates the requirement to purchase from approved suppliers. This means that the franchisee could face escalating costs for non-compliance, potentially impacting their profitability.
For a prospective Nothing Bundt Cakes franchisee, this highlights the importance of adhering to the approved supplier list. It also emphasizes the need to seek approval for alternative suppliers to avoid incurring these fees and potential increases for repeated violations. Franchisees should maintain open communication with Nothing Bundt Cakes regarding their supply needs and any potential issues with approved suppliers.