Is the Nothing Bundt Cakes unapproved supplier fee subject to change?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
d designated suppliers. We will not approve an unreasonable number of suppliers if the approval might result in higher costs to System franchisees or prevent the effective or economical supervision of approved suppliers.
In addition to our right to terminate this Agreement if you fail to purchase from our designated and approved suppliers, you must pay us our then-current unapproved supplier fee, currently $250 per day, in the
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 36–40)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the unapproved supplier fee is subject to change. If a franchisee continues to purchase from an unapproved supplier after receiving notice from Nothing Bundt Cakes to cease doing so, they must pay the then-current unapproved supplier fee. Currently, this fee is $250 per day. However, the FDD explicitly states that this fee is subject to change for repeated violations of the prohibition against using unapproved suppliers.
This means that Nothing Bundt Cakes has the right to modify the unapproved supplier fee, especially if a franchisee repeatedly violates the approved supplier policy. The franchisor can increase the fee to ensure compliance with their approved supplier network. This policy is in place to maintain quality control and uniformity across all Nothing Bundt Cakes locations.
For a prospective franchisee, this highlights the importance of adhering to the approved supplier list. Failure to do so can result in a daily fee, which is currently $250, and this fee could increase if the franchisee continues to violate the policy. It is crucial to understand the approved supplier list and the process for requesting approval of new suppliers to avoid incurring these fees.