Nothing Bundt CakesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $667K – $1.0M
- 89th pct Service Resta…
- Avg gross sales
- $1.5M
- 46th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 660
- 91st pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 283 SBA loans charged off, well below the 16% franchise average.
The system grew 19% year-over-year. Fast growth means demand, but can strain support.
37% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $667K – $1.0M including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.4M), with an estimated 37% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 20/100. SBA loan charge-off rate of 0.0% across 283 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 40.1% CAGR over 3 years with 660 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- NBC Franchisor LLC
- Parent company
- NBC Holdings, LLC
- Predecessor
- and our affiliate is Nothing Bundt Franchising LLC
- 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
- Audited financials
- Franchisor revenue
- $39.0M
- vs $52.3M 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
Franchisees operate specialty bakery retail locations focused on customizable bundt cakes and complementary baked goods. Daily operations include cake production/baking, customer service, order fulfillment (walk-in and custom orders), inventory management, and staffing oversight. The model emphasizes product customization and seasonal offerings to drive repeat customer traffic and catering/corporate sales.
- CEO
- Dolf A. Berle
- Headquarters
- TX
- Founded
- 2021
- FDD year
- 2025
- States available
- 43
FDD Item 7 · 2025 filing · 30 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.
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
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $667K – $1.0M
- Below avg, review vs category
- Liquid capital req'd
- $75K – $75K
- Below avg, review vs category
- Franchise fee
- $45K – $45K
- Below avg, review vs category
- Royalty
- 6.0%
- Net Revenues · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
- Payback period
- 2.7 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 | $3K |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $23K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.4M
- Avg net income
- $317K
- Cash-on-cash
- 37.3%
- Based on Net Income / investment midpoint
- Item 19 type
- net_sales
- Sample size
- 459 units
- vs category median 28 · large
- Range (low → high)
- $502K→$3.7M
- Cohort dispersion (min → max)
- Quartile band
- $985K→$2.1M
- Bottom 25% → top 25%
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Nothing Bundt Cakes Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 660
- Opened
- 101
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 17
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +18.6%
- Net unit change last year
- 3-yr CAGR
- +40.1%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 16
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 46
- 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
Vintage analysis
Nothing Bundt Cakes charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
3 case reference(s): 0 pending, 9 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 20 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius-based |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 4 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 9 settled.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 120 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
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 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 459 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 risk score of 20 out of 100, 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
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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.