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Nothing Bundt Cakes Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsTXFranchising since 2021
AStrongest tierStrongest tier98/100Editorial grade from public filings; not investment advice.
Investment
$667K – $907K
Disclosed sales
$1.5M
gross sales, not profit
SBA charge-off
0.0%
on 283 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-01796FDD 2025Data QualityExcellent100%
Owner-operator requiredYes: Protected territory

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 – $907K, 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 →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.

Overview

Investment
$667K – $907K
85th pct Service Resta…
Avg gross sales
$1.5M
Net sales28th pct Service Resta…
Royalty
6.0%
48th pct Service Resta…
Units
660
90th 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

Total Investment
$667K – $907K
Median $486K
above median ↑, worse than category
Franchise Fee
$45K – $45K
Median $35K
above median ↑, worse than category
Liquid Capital Req'd
$75K – $75K
Median $33K
above median ↑, worse than category
Avg Revenue
$1.5M
Median $975K
above median ↑, better than category
Net sales
Royalty Rate
6.0%
Median 5.5%
near median
Ongoing Fees
11.0% of rev
Median 7.5%
above median ↑, worse than category
SBA Charge-Off Rate
0.0%
283 loans · Median 14.3%
below median ↓, better than category
System Size
660 units
Median 18 units
above median ↑, better than category
Turnover Rate
N/A
Median 0.0%
Territory
Protected, not exclusive
Limits on the franchisor opening nearby; not an exclusive zone
Owner-Operator
Required
You must run it yourself
Litigation
4 cases
Some history

Green = favorable by >10% vs Quick-Service Restaurants median · 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 – $907K including a $45K franchise fee, 6.0% ongoing royalty.
  • RETURNSAverage unit revenue of $1.5M/year (median $1.4M), with an estimated 22% 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).
  • GROWTHPositive: net +101 franchised outlets in the latest year (101 opened, 0 closed); 87 signed but not yet open (Item 20).
  • 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
FDD Item 1, page 9 of the 2025 FDD
Ultimate parent
NBC Holdings, LLC (owned by Roark Capital Management LLC private equity funds)
FDD Item 1, page 9 of the 2025 FDD
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).

Same owner · FDD Item 1, page 9

Portfolio: Roark Capital (private-equity sponsor)

Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

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 62% above the typical quick-service restaurants franchise.

Total investment (Item 7)$667K – $907KCited, not corroborated — printed on page 31 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Franchise fee$45,000Verified — printed on page 22 of the 2025 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty6.0%Cited, not corroborated — printed on page 23 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund5.0%Cited, not corroborated — printed on page 24 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$75K – $75K

Source: FDD 2025 · Items 5–7

Full Item 7 breakdown15 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
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
Total initial investment$667K$907K

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 – $907K
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%
typical 6–8%
Ad fund
5.0%
typical 3–5%
Total fee load
11.0%
vs 9–13% typical
Payback period
4.5 yrs
From FDD / Item 19

Ongoing fees · Item 6

Nothing Bundt Cakes: Item 6 recurring fees
FeeAmount
Royalty6.0% of net sales
Marketing / ad fund5.0% of net sales
Technology fee$100
Transfer fee$10K
Renewal fee$23K
Inventory (initial)$25K – $25K
Total fee load11.0% of rev

What do units actually make?

Average unit sales run 52% above the quick-service restaurants norm.

Avg gross sales$1.5M

Reported as net sales, not gross sales

Cited, not corroborated — printed on page 72 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$1.4MCited, not corroborated — printed on page 72 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typenet sales
Sample size459 outlets

Source: FDD 2025 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Nothing Bundt Cakes until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$862K

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

FDD-reported earnings

The FDD reports $317K as 4-Wall EBITDA. This is a disclosed figure, not our estimate — we publish no modelled profit for Nothing Bundt Cakes.

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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $1,480,010 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $667K–$907K (midpoint used)
FDD reports $75K–$75K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$862K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

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

Reported as net sales, not gross sales

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
22.1%
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 sales
Sample size
459 outlets
vs category median 19 · large
Range (low → high)
$502K→$3.7MCited, not corroborated — printed on page 72 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
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
Gross sales rank28th
Item 19 reporting methods vary across brands
Investment cost rank85th
Lower investment ranks lower (better)
Royalty rate rank48th
Lower royalty = lower percentile (better)
Unit count rank90th
vs Quick-Service Restaurants peers
Risk score rank0th
Lower risk = lower percentile (better)

Compared against 781 Quick-Service Restaurants brands

Showing the headline figures — all 172 extracted fields are in the Full FDD Report · $19 →

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: 1.9x.

Fee burden

Total ongoing fee load of 11.0% — above the Quick-Service Restaurants median of 7.5%.

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 medians

How Nothing Bundt Cakes Compares

Metric
Nothing Bundt Cakes
Category median
vs median
Investment
$787K
$486Kmiddle half $342K–$748K · n=780
Above median, worse than category
Revenue
$1.5M
$975Kmiddle half $664K–$1.4M · n=284
Above median, better than category
Unit Count
660
18middle half 5–79 · n=755
Above median, better than category

Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units660Verified — printed on page 80 of the 2025 FDD (Item 20), and the table's own arithmetic closes on it three ways.
3-yr growth+40.1% (favorable vs category)

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
N/A
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

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Transferred
46
Reacquired
0
Franchisor bought back
Signed, not yet open
87
0.13 per open outlet · Item 20 Table 5
Projected new
123
Franchisor's next-year forecast
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
2022
459
Franchised units
2023
542+83
Franchised units
2024
643+101
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 43 states
No contacts on file

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).

Where the owners are · Item 20 owner list

656 current owners across 43 states.

  • TX 103
  • CA 79
  • FL 46
  • IL 30
  • NC 30
  • GA 24
  • VA 24
  • OH 23
  • OK 18
  • PA 18
  • TN 17
  • CO 15
  • +31 more states

Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

A
SBA Lending Health
Excellent SBA lending record · 0.0% charge-off
Total loans
283
Loan volume
$138.5M
Median loan
$433K
50th percentile
Charge-off rate
0.0%
on 283 loans · 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

BrandNational avg
Nothing Bundt Cakes charge-off rate by loan vintage. Showing 14 vintages from 2011 to 2025. Rates range from 0.0% to 0.0%.0%5%10%'11'15'18'21'24'25

Top lenders financing Nothing Bundt Cakes franchisees

Meadows Bank84 loans0.0%
Stearns Bank National Association22 loans0.0%
The Huntington National Bank21 loans0.0%

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.

Total loans
3
Loan volume
$2.0M
Charge-off rate
N/A
Jobs created
130

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Nothing Bundt Cakes from SBA 7(a) FOIA data.

Principal loss rate
0.0%
Avg SBA guarantee
75%
Avg interest rate
6.84%
Lender concentration
29.7%
Job velocity
4.4 per $100K
Startup risk premium
0.0pp
NAICS benchmark
1.2%
NAICS 311811
Jobs supported
6,044

Top SBA lendersTop lender holds 30% of loans

#LenderLoansVolumeDefault %
1Meadows Bank84$35.7M0.0%
2Stearns Bank National Association22$7.9M0.0%
3The Huntington National Bank21$7.1M0.0%
4U.S. Bank, National Association13$4.5M0.0%
5SouthState Bank, National Association9$4.3M0.0%
6KeyBank National Association8$3.0M0.0%
7United Community Bank8$5.6M0.0%
8PNC Bank, National Association7$4.5M0.0%
9JPMorgan Chase Bank, National Association7$3.1M0.0%
10Potomac Bank7$4.2MN/A

Geographic failure vector

StateLoansDefaultsRate
TXTexas3500.0%
CACalifornia2900.0%
PAPennsylvania1900.0%
OHOhio1700.0%
FLFlorida1600.0%
VAVirginia1600.0%
ILIllinois1400.0%
GAGeorgia1300.0%
INIndiana1200.0%
COColorado1000.0%

SBA 7(a) lending trend

2010
1
2011
3
2012
1
2013
4
2014
15
2015
19
2016
24
2017
15
2018
17
2019
32
2020
16
2021
42
2022
30
2023
23
2024
20
2025
20
2026
1

Borrower profile

Startup148 (74%)
New (< 2 yr)21 (10%)
Existing (2+ yr)19 (9%)
Ownership change6 (3%)
Unanswered5 (2%)
Less than 4 years old but at least 31 (0%)
Less than 5 years old but at least 41 (0%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

Lending insight

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.

SBA charge-off0.0% · 283 loans
Verdict score98/100 (higher is better)
Litigation4 cases · none name the franchisor
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

AStrongest tier98Verdict score 98/100

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.

High confidence±4 pts
94100

Litigation (Item 3)

Subject: officers or affiliates. The franchisor is not a named party in these cases.

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, in a case that does not name the franchisor: $650,000

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · KPMG LLP (Dallas, Texas)

Franchisor revenue (Item 21)

Yr 1: $52.3MYr 2: $39.0M

Franchisor entity revenue (not unit-level)

Total revenues for fiscal year ended December 29, 2024 consist of a single line item, "Royalty, franchise fee, and other revenue" of $52,274 thousand (FY2023: $39,014 thousand). Statements presented in thousands; audited by KPMG LLP (NBC Franchisor LLC).

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

  1. 01MEDMaryland Securities Commissioner consent order (2021) indicates regulatory compliance failure in franchise sales disclosure
  2. 02HIGHParent company litigation pattern across multiple brands (Arby's, Dunkin') suggests systemic governance issues with no-poaching and data security
  3. 03MINORRapid 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

Showing the headline figures — all 172 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail4 matters · Item 3

Litigation cases

The franchisor

Concluded (1)

  • In the Matter of Nothing Bundt Franchising, LLC, Securities Commissioner of Maryland

    concluded

    Government or regulatory action · Securities Commissioner of Maryland · 2021-0013

    “In the Matter of Nothing Bundt Franchising, LLC, Securities Commissioner of Maryland; Case No. 2021-0013. On March 4, 2021, NBC entered into a consent order with the Maryland Securities Commissioner on account of an October 2020 franchise sale in Maryland when NBC was not effectively registered to sell franchises.”Page 21 of the 2025 FDD, Item 3

    Outcome:“In resolving the matter, NBC agreed to offer the franchisee the right to rescind its franchise agreement and to immediately and permanently cease and desist from the offer or sale of franchises in violation of the Maryland Franchise law.”

Parent, affiliates and predecessor

Concluded (3)

  • New York v. Dunkin' Brands, Inc.

    concluded

    Government or regulatory action · Dunkin Brands, Inc. ("DBI"), named in the filing as "our affiliate" · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019

    “New York v. Dunkin’ Brands, Inc. (N.Y. Supreme Court for New York County, Case No. 451787/2019, filed September 26, 2019). In this matter, the N.Y. Attorney General (“NYAG”) filed a lawsuit against our affiliate, DBI, related to credential-stuffing cyberattacks during 2015 and 2018.”Page 22 of the 2025 FDD, Item 3

    Outcome:“Under the consent order, DBI agreed to pay $650,000 in penalties and costs, issue certain notices and other types of communications to New York customers, and maintain a comprehensive information security program through September 2026, including precautions and response measures for credential-stuffing attacks.”

  • The People of the State of California v. Arby's Restaurant Group, Inc.

    settled

    Government or regulatory action · Arby's Restaurant Group, Inc. ("ARG"), named in the filing as "our affiliate" · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397

    “The People of the State of California v. Arby’s Restaurant Group, Inc. (California Superior Court, Los Angeles County, Case No. 19STCV09397, filed March 19, 2019). On March 11, 2019, our affiliate, Arby’s Restaurant Group, Inc. (“ARG”), entered into a settlement agreement with the states of California”Page 21 of the 2025 FDD, Item 3

    Outcome:“Under the settlement agreement, ARG paid no money but agreed (a) to remove the disputed provision from its franchise agreements (which it had already done); (b) not to enforce the disputed provision in existing agreements”

  • The People of the State of California v. Dunkin' Brands, Inc.

    settled

    Government or regulatory action · Dunkin Brands, Inc. ("DBI"), named in the filing as "our affiliate" · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597

    “The People of the State of California v. Dunkin’ Brands, Inc., (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.) On March 14, 2019, our affiliate, Dunkin Brands, Inc. (“DBI”), entered into a settlement agreement with the Attorneys General of 13 states”Page 21 of the 2025 FDD, Item 3

    Outcome:“The Attorney General of the State of California filed the above-reference lawsuit in order to place the settlement agreement in the public record, and the action was closed after the court approved the parties’ stipulation of judgment.” (page 22)

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term10 yrs
TerritoryProtected, not exclusive
Initial training160 hrs

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term10 years
Allowed renewalsℹ1
Territory typeProtected territory
Protected territoryYes
Exclusive territoryℹNo
Online sales rightsℹGranted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorRequired
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ10 mi
Right of first refusalℹYes
RoFR response window30 days
Transfer requires consentYes
Termination notice15 days
Mandatory arbitrationYes
Arbitration locationDallas, Texas (within 10 miles of franchisor's principal business address)
Jury trial waiverYes
Governing lawTX
Litigation count4
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

✓Site selection assistance
✓Grand opening support
✓Lease negotiation help

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

Unlock 656 contacts · $49
Free preview
(239) 294-••••FL
Unlock all 656 contacts
(412) 883-••••PA
(703) 782-••••VA
(610) 456-••••PA
(617) 336-••••MA

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 – $907K, 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. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns Nothing Bundt Cakes?

Nothing Bundt Cakes is franchised by NBC Franchisor LLC. Its parent company is NBC Holdings, LLC. The ultimate parent named in the FDD is NBC Holdings, LLC (owned by Roark Capital Management LLC private equity funds). Source: FDD Item 1, 2025 filing.

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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.