Nothing Bundt Cakes Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Nothing Bundt Cakes is a specialty-bakery franchise selling handcrafted bundt cakes in sizes from bite-size to tiered, plus seasonal flavors. Franchisees run bakeries handling cake production, decorating, and walk-in, gifting, and catering orders.
FranchiseVerdict summary · 2026
A Nothing Bundt Cakes franchise requires a total initial investment of $667K – $1.0M, including a $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.5M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 283 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $667K – $1.0M
- 86th pct Service Resta…
- Avg gross sales
- $1.5M
- 25th pct Service Resta…
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 660
- 91st pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $667K – $1.0M including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.5M/year (median $1.4M), with an estimated 21% cash-on-cash return (based on 4-Wall EBITDA).
- RISKVerdict A (Strongest tier), verdict score 98/100 (higher is better). SBA loan charge-off rate of 0.0% across 283 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 40.1% CAGR over 3 years with 660 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- NBC Franchisor LLC
- Parent company
- NBC Holdings, LLC
- Ultimate parent
- NBC Holdings, LLC (owned by Roark Capital Management LLC private equity funds)
- Predecessor
- Nothing Bundt Franchising LLC (began franchising 2006)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Dolf A. Berle
- Incorporated in
- DE
- HQ
- 5005 Lyndon B. Johnson Pkwy, Suite 600, Dallas, Texas 75244
- Auditor
- KPMG LLP (Dallas, Texas)
- Audited financials
- Franchisor revenue
- $52.3M
- vs $39.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- is Nothing Bundt Franchising
- NBC Bakery Holder
- GiftingU
- NBC Distribution Holder
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Dolf A. Berle
- Headquarters
- TX
- Founded
- 2021
- FDD year
- 2025
- States available
- 43
Can you afford it, and what does the money buy?
Entry cost runs 29% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown30 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Bakery ≤1,800 sq. ft.)not refundable | $45K | $45K | |
| Rent and Security Deposit (Bakery ≤1,800 sq. ft.)not refundable | $0 | $13K | |
| Bakery Improvements (Bakery ≤1,800 sq. ft.)not refundable | $275K | $350K | |
| Architect - Design (Bakery ≤1,800 sq. ft.)not refundable | $11K | $13K | |
| Fixtures and Equipment - Front and Back of Bakery (≤1,800 sq. ft.)not refundable | $200K | $275K | |
| Exterior Signage (Bakery ≤1,800 sq. ft.)not refundable | $8K | $15K | |
| Initial Inventory (Bakery ≤1,800 sq. ft.)not refundable | $25K | $25K | |
| Point of Sale System (Bakery ≤1,800 sq. ft.)not refundable | $8K | $13K | |
| Insurance (Bakery ≤1,800 sq. ft.)not refundable | $3K | $6K | |
| Business License and Permits (Bakery ≤1,800 sq. ft.)not refundable | $2K | $10K | |
| Professional Fees (Bakery ≤1,800 sq. ft.)not refundable | $3K | $8K | |
| Opening Advertising Program (Bakery ≤1,800 sq. ft.)not refundable | $10K | $15K | |
| Training Expenses (Bakery ≤1,800 sq. ft.)not refundable | $4K | $10K | |
| Delivery Vehicle - Monthly lease or loan payment (Bakery ≤1,800 sq. ft.)not refundable | $500 | $35K | |
| Additional Funds - 3 months (Bakery ≤1,800 sq. ft.)not refundable | $75K | $75K | |
| Initial Franchise Fee (Bakery >1,800 sq. ft.)not refundable | $45K | $45K | |
| Rent and Security Deposit (Bakery >1,800 sq. ft.)not refundable | $0 | $15K | |
| Bakery Improvements (Bakery >1,800 sq. ft.)not refundable | $275K | $450K | |
| Architect - Design (Bakery >1,800 sq. ft.)not refundable | $11K | $13K | |
| Fixtures and Equipment - Front and Back of Bakery (>1,800 sq. ft.)not refundable | $280K | $300K | |
| Total initial investment | $1.4M | $1.9M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $667K – $1.0M
- Bottom third — review vs category
- Liquid capital req'd
- $75K – $75K
- Bottom third — review vs category
- Franchise fee
- $45K – $45K
- Bottom third — review vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
- Payback period
- 4.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $23K |
| Inventory (initial) | $25K – $25K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 22% above the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$163K
11.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.7 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $317K as 4-Wall EBITDA. Our model estimates $163K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because 4-Wall EBITDA deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Nothing Bundt Cakes unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Nothing Bundt Cakes units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $5.9M purchase
Total debt
$4.7M
SBA $3.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.4M
- Avg 4-wall ebitda
- $317K
- Reported as 4-Wall EBITDA in FDD Item 19
- Cash-on-cash
- 20.5%
- Based on 4-Wall EBITDA / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Net Revenues with P&L cost analysis and ramp data
- Sample size
- 459 outlets
- vs category median 20 · large
- Range (low → high)
- $502K→$3.7M
- Cohort dispersion (min → max)
- Quartile band
- $985K→$2.1M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.5M/year in gross sales. Revenue-to-investment ratio: 1.7x.
Fee burden
Total ongoing fee load of 11.0% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 40.1% CAGR over 3 years across 660 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Nothing Bundt Cakes Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 660
- Opened
- 101
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 17
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +40.1%
- Net unit change over 3 years
- 3-yr CAGR
- +40.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 83
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 24
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 9.7%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
- Ceased ops
- 3.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 43 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
- Minnesota
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 283
- Loan volume
- $138.5M
- Median loan
- $433K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 72
- Defaults
- 0
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 10.0%
- brand beats franchise avg ↓
- Jobs supported
- 6,044
- 4.4 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 84% went to startups / new businesses, 16% to established operators
Franchise vs independent — in retail bakeries, franchised businesses charge off at 10.0% vs 17.6% for independents — franchising is associated with 43% lower SBA default risk in this category.
Vintage analysis
Nothing Bundt Cakes charge-off rate by loan vintage
Top lenders financing Nothing Bundt Cakes franchisees
Showing 3 of 72 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Nothing Bundt Cakes's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 17-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 283 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Nothing Bundt Cakes shows moderate-to-cautious risk: strong unit growth and profitability claims are offset by regulatory settlements, unverified financial disclosures, and parent company litigation history suggesting operational and compliance gaps.
Litigation (Item 3)
NBC predecessor Nothing Bundt Franchising LLC entered consent order with Maryland Securities Commissioner (2021) for selling franchise without registration. Three affiliate actions (Arby's no-poach settlement, Dunkin no-poach settlement, Dunkin NY data breach settlement) also disclosed but do not involve the franchisor directly.
Largest disclosed settlement: $650,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP (Dallas, Texas)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 98 / 100 verdict
- 01MEDMaryland Securities Commissioner consent order (2021) indicates regulatory compliance failure in franchise sales disclosure
- 02HIGHParent company litigation pattern across multiple brands (Arby's, Dunkin') suggests systemic governance issues with no-poaching and data security
- 03MINORItem 19 (Financial Performance) absent — average revenue of $1.48M and net income of $316.6K cannot be independently verified
- 04MINORHigh initial investment range ($667K–$1.03M) with 6% royalty creates breakeven pressure if unit underperforms system average
- 05MINORRapid unit growth (18.6% YoY) to 660 units may signal recruitment-driven expansion rather than mature, profitable unit sustainability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | Yes |
| Arbitration location | Dallas, Texas (within 10 miles of franchisor's principal business address) |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 1 |
View Item 3 litigation summary
NBC predecessor Nothing Bundt Franchising LLC entered consent order with Maryland Securities Commissioner (2021) for selling franchise without registration. Three affiliate actions (Arby's no-poach settlement, Dunkin no-poach settlement, Dunkin NY data breach settlement) also disclosed but do not involve the franchisor directly.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 120 hrs
- Training location
- Dallas, Texas (company/affiliate bakeries)
- Ongoing training
- Required
- Field support
- 5 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisor approval required; franchisee must work with designated commercial real estate broker
- Franchisor financing
- Not offered
- Item 10
- POS system
- Proprietary POS system (3 terminals)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Proprietary POS system (3 terminals)
Item 20 · call current owners
Franchisee Contacts
656 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Nothing Bundt Cakes · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Nothing Bundt Cakes franchise?
The total investment to open a Nothing Bundt Cakes franchise ranges from $667K – $1.0M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Nothing Bundt Cakes franchise owners earn?
According to Item 19 of the Nothing Bundt Cakes FDD, the average gross sales per unit is $1.5M. The median is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Nothing Bundt Cakes FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Nothing Bundt Cakes FDD and qualifies whose outlets they describe.
What is Nothing Bundt Cakes's franchise failure rate?
Based on SBA 7(a) loan data, Nothing Bundt Cakes has a charge-off rate of 0.0% across 283 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Nothing Bundt Cakes franchise locations are there?
As of their most recent FDD filing, Nothing Bundt Cakes has 660 total units in the United States, including 643 franchised units and 17 company-owned units. 101 new units were opened in the latest reporting year.
Is Nothing Bundt Cakes a good franchise to buy?
FranchiseVerdict rates Nothing Bundt Cakes as a A-grade franchise with a verdict score of 98 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.