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Description
Investment Icon

What Are the Initial Investment Requirements for a Nothing Bundt Cakes Franchise?

To open a Nothing Bundt Cakes franchise, you should prepare for an initial investment ranging from $585,015 to $1,101,001. This includes a franchise fee of $45,000. Additionally, potential franchisees need to have a minimum cash requirement of $75,000 and a net worth between $300,000 and $500,000. These financial prerequisites are essential for ensuring that franchisees can sustain their operations and support the brand's growth.

Fees Icon

What Are the Ongoing Fees Associated with a Nothing Bundt Cakes Franchise?

Franchisees of Nothing Bundt Cakes are subject to ongoing fees that include a royalty fee of 6% and a marketing fee of 5% of their gross sales. These fees contribute to the overall brand marketing efforts and support systems that help maintain the franchise's reputation and customer outreach. Understanding these ongoing costs is crucial for effective financial planning and ensuring the profitability of your franchise unit.

Revenue Icon

What Is the Average Revenue Potential for a Nothing Bundt Cakes Franchise?

The average annual revenue for a Nothing Bundt Cakes franchise unit is approximately $1,479,065, with a median revenue of $1,055,349. The revenue can vary significantly, with the lowest annual revenue reported at $378,000 and the highest at $3,787,195. This range indicates the potential for strong financial performance, especially in well-chosen locations and with effective management strategies.

Breakeven Icon

What Is the Breakeven Timeline for a Nothing Bundt Cakes Franchise?

Franchisees can expect to reach breakeven within 12 months of opening their Nothing Bundt Cakes location. This relatively quick payback period is attractive for aspiring franchise owners, as it allows for a faster return on investment. With proper operational management and marketing efforts, new franchisees can capitalize on the brand's established customer base and strong market presence.

Nothing Bundt Cakes Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$300,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

12 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$45,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

5%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$585,015 - $1,101,001
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$75,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,404,118
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,055,349
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$3,787,195
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$378,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Retail Franchises
Category icon A more specific division within the broader industry.

i Category:

Specialty Retail
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Sarah Spiegel
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

4560 Belt Line #350, Addison, Texas 75001
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2006
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Nothing Bundt Franchising, LLC

Nothing Bundt Cakes Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

476
The number of locations owned by independent franchisees.

Franchised Units i

459
The number of locations owned and run by the franchisor.

Corporate Units i

17
Units 2021 2022 2023
Total Units 378 424 476
Net Change YoY 46 52
Franchised Units 362 408 459
Net Change YoY 46 51
Corporate Units 16 16 17
Net Change YoY 0 1
Investment About

Investment Overview

Nothing Bundt Cakes offers a franchise opportunity with a low initial investment ranging from $585,015 to $1,101,001. The franchise fee is set at $45,000, with ongoing royalty and marketing fees of 6% and 5% of gross sales, respectively. Prospective franchisees should have a minimum cash requirement of $75,000 and a net worth ranging from $300,000 to $500,000 to ensure financial stability when starting their business.

Potential About

Financial Performance

The average annual revenue per unit for Nothing Bundt Cakes is approximately $1,404,118, with a median revenue of $1,055,349. Units have reported annual revenues ranging from $378,000 to as high as $3,787,195, indicating strong sales potential. With a breakeven time of just 12 months, franchisees can expect a quick return on their investment, making it an attractive option for aspiring entrepreneurs.

Metrics About

Operational Efficiency

Nothing Bundt Cakes maintains a gross profit margin of 75.8%, with operating expenses averaging $792,896 annually, which is about 53.6% of revenue. This efficient cost structure allows franchisees to achieve an EBITDA of approximately $327,526, representing 22.1% of revenue. Understanding these financial metrics is crucial for franchisees to optimize profitability and manage their operations effectively.

Fees About

Franchise Growth

The Nothing Bundt Cakes franchise has demonstrated consistent growth, expanding from 362 franchised units in 2021 to 459 units in 2023. This growth trajectory reflects the brand's increasing popularity and market presence. Additionally, the company operates 17 corporate-owned units, providing a balanced model of franchised and corporate locations that supports brand development and operational insights.

Breakeven About

Company Background

Founded in 1997, Nothing Bundt Cakes specializes in crafting delicious, high-quality bundt cakes for various occasions. With a commitment to using fresh ingredients and unique flavors, the brand has grown into a beloved name in the dessert industry. Their inviting bakery atmosphere and exceptional customer service further enhance the overall experience, making it a popular choice for celebrations and everyday treats alike.

Units About

Marketing Strategy

Nothing Bundt Cakes employs a comprehensive marketing strategy that includes both national and local initiatives. Franchisees contribute to a marketing fund through a 5% fee, which supports brand awareness and promotional campaigns. The focus on community engagement and social media presence helps drive customer loyalty and foot traffic, ensuring franchisees have the tools they need to succeed in their respective markets.

Frequently Asked Questions

The initial investment for a Nothing Bundt Cakes franchise ranges from $585,015 to $1,101,001. This includes the initial franchise fee of $45,000, along with other startup costs such as equipment and inventory.