Under the Nothing Bundt Cakes E-Commerce Program, what happens to guest payments?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
All Guest payments will be remitted directly to the franchisee's designated bank account, net of any vendor's then-current credit card processing or other fees (the "Vendor Fee") and gateway fees, to administer the platform and process payments, which are subject to change.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, under the E-Commerce Program, guest payments are remitted directly to the franchisee's designated bank account. However, this is after deducting any vendor fees for credit card processing or other fees, referred to as the "Vendor Fee," and gateway fees for administering the platform and processing payments. These fees are subject to change.
This means that while franchisees receive the revenue from online orders, they will not receive the gross amount paid by the guest. The vendor and gateway fees will be deducted before the funds are deposited into the franchisee's account. Franchisees should factor these fees into their financial projections and understand that these fees can change over time, affecting their profitability from e-commerce sales.
Nothing Bundt Cakes retains the right to modify the E-Commerce Program, including the products and services offered, the suggested retail price, user terms, approved e-commerce platforms, vendors, and payment methods and times. Franchisees must stay compliant with the E-Commerce Program terms, the franchise agreement, and the Operations Manual. Non-compliance can lead to prohibition from participating in the E-Commerce Program. This highlights the importance of staying informed about any changes to the program and adhering to all requirements to maintain participation and revenue from online sales.