Nothing Bundt Cakes Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$667,100 - $1,032,500
Franchise Fee
$22,500
Total US Locations
655
Business Summary
Nothing Bundt Cakes operates gourmet bakeries that offer and sell specialty bundt cakes, various other food items, and retail merchandise. The business utilizes its unique "Nothing Bundt Cakes" brand and a proprietary system covering recipes, decoration methods, bakery design, online order fulfillment, sales techniques, and overall management.
Corporate History
Nothing Bundt Cakes, operating as NBC Franchisor LLC, was established in Delaware in June 2021. Its franchising journey began earlier through its predecessor, Nothing Bundt Franchising LLC, which was formed in Nevada in May 2006 and started offering Nothing Bundt Cakes franchises around the same time. This entity itself had a predecessor, Nothing Bundt Franchising, Inc., formed in October 2005. In July 2021, following a secured financing transaction, NBC Franchisor LLC became the official franchisor for all Nothing Bundt Cakes locations. While the franchisor itself does not operate bakeries of the type offered, some of its affiliates do. The ultimate parent company, NBC Holdings, LLC, is owned by private equity funds managed by Roark Capital Management LLC.
Financial Overview
Investment Range
$667,100 - $1,032,500
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$45,000
Royalty %
6%
Marketing %
5%
Equipment Costs (Low)
$482,500
Equipment Costs (High)
$765,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights a special risk regarding Nothing Bundt Cakes' financial condition, stating that it "calls into question the franchisor's ability to provide services and support" to franchisees. While Nothing Bundt Cakes' own financial statements show total assets of $932 million and net income of $29 million as of December 29, 2024, the company guarantees secured notes with an outstanding balance of $576.2 million held by its parent company, NBC Funding LLC. These notes are secured by substantially all of Nothing Bundt Cakes' assets. This significant financial guarantee on a large debt, though not directly on its balance sheet, is the basis for the highlighted financial risk.
Financing Details
Nothing Bundt Cakes does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any notes, leases, or other obligations for them. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
655
Franchised Units
638
Corporate Units
17
Avg Square Footage
2,000
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
4
Litigation Summary
Nothing Bundt Cakes' predecessor, Nothing Bundt Franchising, LLC, settled a case with the Maryland Securities Commissioner in March 2021. This action arose because the predecessor sold a franchise in Maryland in October 2020 without being properly registered in the state. The resolution required the predecessor to offer the franchisee a right to rescind the agreement and to permanently cease any franchise sales that violate Maryland franchise law. Additionally, Nothing Bundt Cakes is affiliated with other brands that have had litigation. Arby's Restaurant Group, Inc., an affiliate, settled with 11 states in March 2019 over "no-poaching" provisions in its franchise agreements. Arby's agreed to remove these clauses and not enforce them, without admitting guilt. Another affiliate, Dunkin' Brands, Inc., settled with 13 states in March 2019 for similar "no-poaching" clauses, agreeing not to enforce them and to amend relevant agreements. Dunkin' Brands also settled a lawsuit with the New York Attorney General in September 2019 concerning cyberattacks in 2015 and 2018. As part of that settlement, Dunkin' Brands agreed to pay $650,000 and maintain an information security program through September 2026.
Bankruptcy History
Nothing Bundt Cakes has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Nothing Bundt Cakes franchisees must provide written notice between 3 to 9 months before their current term expires. They need to demonstrate the right to operate their bakery at an approved location for the full renewal term, or secure an an acceptable substitute site. Franchisees must also prove their financial capability to operate by providing financial records, which Nothing Bundt Cakes can inspect. They are required to request and complete a reimage survey between 6 to 12 months before expiration, then finish all necessary maintenance, refurbishing, reimaging, renovations, and hardware/software updates to meet Nothing Bundt Cakes' current standards 90 days before the term ends. Franchisees must not be in breach of any agreements with Nothing Bundt Cakes, its affiliates, or approved suppliers, and must have satisfied all monetary obligations. Additionally, they must complete any required training, sign Nothing Bundt Cakes' then-current franchise agreement (which may have materially different terms, including a modified territory size), and execute a general release.
Training & Support Program
Franchisor Assistance
Nothing Bundt Cakes provides extensive assistance to its franchisees. Before a bakery opens, Nothing Bundt Cakes defines the protected territory and provides detailed specifications and requirements for all aspects of the physical bakery, including flooring, signage, equipment, and a list of approved suppliers. They lend a confidential Operations Manual electronically, covering all operational procedures. Nothing Bundt Cakes also assists with site selection, working with a designated commercial real estate broker, and approves all proposed locations and lease terms, requiring a Collateral Assignment of Lease. Initial training, lasting up to four weeks, is provided tuition-free for two individuals (the franchisee or operator) at a corporate bakery in or around Dallas, Texas, covering product preparation, financial controls, operational techniques, and marketing. Additionally, one Nothing Bundt Cakes representative will provide up to five days of on-site opening assistance, and Nothing Bundt Cakes conducts the grand opening advertising program. After opening, Nothing Bundt Cakes offers ongoing consultation and advice via telephone, email, and intranet. They hold an annual conference for franchisees, which is mandatory to attend and may include a registration fee (along with the franchisee's own travel and living expenses). Nothing Bundt Cakes conducts regular inspections of the bakery and delivery vehicles, and may require or offer refresher training programs for a fee. The company also administers the E-Commerce Program for online orders, and manages the Marketing Production Fund and Paid Media Fund for system-wide advertising, promotions, and public relations. Additionally, Nothing Bundt Cakes may update and upgrade the System by modifying or adding new proprietary recipes and products.
Initial Training Hours
160
Training Location
Dallas, Texas
Ongoing Support
After a Nothing Bundt Cakes bakery opens, franchisees receive continuous consultation and advice through phone, email, and intranet communication. For additional on-site assistance, franchisees can request a representative at a cost of $500 per day plus travel, lodging, meals, and payroll. Nothing Bundt Cakes holds an annual conference, which franchisees are required to attend for up to three days, covering their own associated expenses and potentially a registration fee. Nothing Bundt Cakes conducts ongoing inspections of bakeries and vehicles to ensure compliance with quality and uniformity standards. Refresher training programs and courses are offered or mandated periodically, for which franchisees must pay a tuition fee. The franchisor also administers the E-Commerce Program and manages the Marketing Production Fund and Paid Media Fund to coordinate advertising, promotions, and public relations within the territory. Additionally, Nothing Bundt Cakes may update and upgrade the System, including proprietary recipes and products.
Franchise Requirements
Ideal Candidate Profile
Nothing Bundt Cakes seeks individuals who are prepared to dedicate their full-time attention and best efforts to the management and operation of their bakery. If the franchisee is a corporation or other entity, one of its principals must serve as the "Operator" and be fully dedicated to the day-to-day operations. This Operator must be approved by Nothing Bundt Cakes, successfully complete the initial training program, and meet current Operator standards. Operators are generally not permitted to engage in other business activities without prior written consent. For those interested in multi-unit ownership, candidates must meet Nothing Bundt Cakes' specific criteria for multi-unit franchise owners. The FDD also notes that a franchisee's success depends on their management skill, experience, and business acumen.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
Nothing Bundt Cakes defines its territory boundaries around an approved location based on the market area, considering factors like population density and drive times. While there is no set minimum or maximum radius, the territory radius will be measured in miles or blocks from the approved location. Nothing Bundt Cakes does not guarantee a specific population density within the territory. All Non-Traditional Sites are explicitly excluded from the franchisee's territory.
Staffing Notes
Nothing Bundt Cakes franchisees must employ a sufficient number of qualified and competent personnel, ensuring prompt, courteous, and efficient service. All employees involved in operating the bakery must conform to Nothing Bundt Cakes' dress code and maintain a neat appearance. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, wage and hour requirements, compensation, and discipline, and must comply with all applicable state, federal, and local employment laws. Nothing Bundt Cakes emphasizes that it is not the employer or joint employer of the franchisee's staff and does not exercise direct control over their working conditions, other than what is necessary to protect product quality and brand. Franchisees are also required to train their employees using specific training materials provided by Nothing Bundt Cakes.