How does Nothing Bundt Cakes use Production Fund contributions?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) We will use Production Fund contributions, in our sole discretion, to develop, produce, and distribute national, regional and/or local advertising and to create advertising materials and public relations programs, which promote, in our sole judgment, the services offered by System franchisees.
We reserve the right, in our sole discretion, to determine the composition of all geographic territories and market or trade areas where such marketing, advertising, and promotional programs are implemented.
We have the sole right to determine contributions to and expenditures from the Production Fund, or any other advertising programs, and the sole authority to determine, without limitation, the selection of the advertising materials and programs, in a manner which we deem to be in the general best interests of the System, without any obligation to obtain your approval or the approval of any other franchisee.
- (b) We may use the Production Fund to satisfy any and all costs of maintaining, administering, directing, preparing, producing, and tracking advertising, including, without limitation the cost of: (i) preparing and producing marketing programs and advertising materials; (ii) reputation management; (iii) public relations activities and advertising agencies; (iv) developing and maintaining an Internet website and a gift card program; (v) developing Guest loyalty programs; (vi) personnel and other departmental costs for maintaining, administering, directing, preparing, producing, and tracking advertising and marketing, and (vii) development of business intelligence tools that report information on your Bakery.
You acknowledge and understand that the contributions to the Production Fund are intended to maximize general public recognition and patronage of the Marks and the System in a manner determined to be most effective by us and that we do not undertake any obligation in developing, implementing, or administering these programs to ensure that all System franchisees will benefit directly or on a pro rata basis from such expenditures.
While we do not anticipate that any part of the Production Fund contributions will be used for advertising which is principally a solicitation for franchisees, we reserve the right to use the Production Fund for public relations or recognition of our brand, for the creation and maintenance of the Website, a portion of which can be used to explain the franchise offering and solicit potential franchisees, and to include a notation in any advertisement indicating "Franchises Available."
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the Production Fund contributions are used at the sole discretion of Nothing Bundt Cakes to develop, produce, and distribute advertising on a national, regional, and local level. These contributions also fund the creation of advertising materials and public relations programs designed to promote the services offered by Nothing Bundt Cakes franchisees. The company determines the geographic territories and market areas where these marketing and promotional programs will be implemented.
Nothing Bundt Cakes has the authority to determine the contributions to and expenditures from the Production Fund, as well as the selection of advertising materials and programs. These decisions are made in a manner that Nothing Bundt Cakes deems to be in the best interests of the franchise system, without requiring approval from franchisees. The funds can cover various costs related to advertising, including preparing and producing marketing programs, reputation management, public relations activities, advertising agencies, website maintenance, gift card programs, and guest loyalty programs.
Additionally, the Production Fund can be used to cover personnel and departmental costs associated with managing advertising and marketing efforts, as well as the development of business intelligence tools that provide information on individual bakeries. Franchisees acknowledge that these contributions are intended to maximize public recognition and patronage of the Nothing Bundt Cakes brand and system. While the company does not anticipate using the Production Fund primarily for franchisee solicitation, it reserves the right to use it for public relations, brand recognition, website maintenance, and to include franchise availability notices in advertisements.