Product category




Expert financial modeling service for franchisees

Nothing Bundt Cakes Franchise Costs $551K – $978K (2024 Fees & Profits)

Nothing Bundt Cakes was founded in 1997 by Debra Shwetz and Dena Tripp in Las Vegas, Nevada. The idea for the business came from their desire to share delicious, homemade cakes with friends and family. Over time, the popularity of their cakes grew, leading to the establishment of the first bakery. Their signature cakes, made with high-quality ingredients and topped with velvety cream cheese frosting, quickly gained a dedicated following.

The company began franchising in 2006 and has since expanded to over 500 locations across the United States and Canada. Headquartered in Addison, Texas, Nothing Bundt Cakes offers a variety of Bundt cake flavors and sizes, including full-sized cakes, Bundtlets, and bite-sized Bundtinis. Each cake is carefully crafted and beautifully decorated to suit various occasions, from birthdays to holidays and everything in between.

Nothing Bundt Cakes differentiates itself from competitors through its commitment to using premium ingredients and providing a unique customer experience. The company emphasizes the importance of hospitality, ensuring that each guest feels welcomed and valued. This approach extends to its franchisees, who are selected based on their ability to embody the brand’s values of sincerity, warmth, and community spirit.

a financial plan for a franchise
Learn more
a financial plan for a franchise
Learn more

Initial investment

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

In consideration of the franchise granted to you, you must pay an initial franchise fee of $35,000, in full, when you sign this Agreement. If you are an existing franchise owner approved to purchase an additional franchise, the initial franchise fee is reduced to $30,000. This fee is non-refundable.

Royalty Fee

You must pay a weekly royalty fee on Tuesday of each week equal to 6% of your Net Revenues during the immediately preceding calendar week.

Marketing/Advertising Fee

The marketing and advertising contributions total 5% of Net Revenues.

Lease or Rent Fee

The estimated initial investment includes lease and security deposits ranging from $6,500 to $8,500, depending on the location and other factors.

Transfer Fees

A transfer fee of $8,000 must be paid in the event of a transfer under certain conditions. For other transfers, a $5,000 fee is required, plus any reasonable brokerage fees or commissions.

Renewal Fees

You must pay a renewal fee equal to 50% of the then-current initial franchise fee at the time you execute your Franchise Agreement.

a financial plan for a franchise
Learn more
a financial plan for a franchise
Learn more

Franchise pros and cons

The Pros:

  • Third-party funding: The franchisor has relationships with third-party lenders to help qualified franchisees get funded for the franchise fee, equipment, inventory, and ongoing costs.
  • Comprehensive training and ongoing support: The franchisor has comprehensive training support consisting of 119 on-the-job training hours and 40 classroom hours to help its franchisees establish and build their franchises smoothly. In addition, it offers them grand opening support and ongoing support such as security, procedures, and field operations.
  • Marketing support: The franchisor has aggressive marketing and advertising systems to help franchisees with their lead generation and sales. These include national media, email marketing, social media, regional advertising, and local store promotional campaigns.
  • Flexible franchise designs: The franchisor presents its franchisees with flexible store designs to choose from, such as local delivery, pickup in a bakery, and curbside delivery. These make it easy for franchisees to fit into the available real estate options and maximize earning potential.
  • Exclusive territory protection: The franchisor grants its franchisees the right to operate in an exclusive territory. Franchisees can enjoy a development market without internal competition.
  • Site selection and lease negotiation: Nothing Bundt Cakes helps its franchisees in the discovery process to identify a suitable restaurant location. Also, it helps them with lease negotiation and development.

 The Cons:

  • No absentee ownership: The franchise does not present a passive investment opportunity. Franchisees must be actively involved in the daily operations and management of their restaurants.
  • Not a home-based opportunity: The franchise cannot be operated from home or a mobile unit. Franchisees are required to have an office space, which adds up to startup and ongoing costs.
  • Higher royalty fee: The franchisor charges a high 6% royalty fee, to which you must add a Marketing Production Fund of 5% of your weekly Net Revenues. 
  • Competitors: Its competitors include Paris Baguette, Cinnabon, to name a few. 

How to open A nothing bundt cakes franchise

1. Evaluate Financial Requirements

  • Initial Investment: The total initial investment ranges from approximately $400,000 to $699,700, which covers costs such as build-out, equipment, signage, and initial inventory.
  • Franchise Fee: There is an initial franchise fee of $35,000.
  • Net Worth and Liquid Capital: Prospective franchisees must have a minimum net worth of $750,000 and at least $250,000 in liquid assets.

2. Submit an Inquiry

  • Initial Contact: Fill out an inquiry form to express your interest in becoming a franchisee.
  • Personal Profile: Provide details about your background, financial capability, and reasons for wanting to join the franchise.

3. Complete the Application Process

  • Non-Disclosure Agreement: Sign an NDA to receive detailed information about the franchise.
  • Franchise Disclosure Document (FDD): Review the FDD, which includes all legal and financial disclosures necessary for potential franchisees.
  • Application: Submit a formal application including your business plan and financial statements.

4. Participate in the Evaluation Process

  • Interviews: Engage in interviews with the franchising team to assess your suitability and alignment with the brand’s values.
  • Discovery Day: Attend a Discovery Day to meet senior support staff and understand the business model in-depth.

5. Secure Financing and Location

  • Financing: Arrange financing for your initial investment through personal funds, loans, or investors.
  • Site Selection: Work with the franchisor to find and secure a suitable location for your bakery, ensuring it meets all site criteria.

6. Training and Opening Preparation

  • Training Program: Complete a comprehensive training program covering operations, marketing, and customer service.
  • Store Build-Out: Oversee the build-out of your bakery, including installation of equipment and signage.
  • Staff Hiring: Recruit and train staff to ensure smooth operations from day one.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

0