Nothing Bundt Cakes is a well-known bakery, and we are sure you must have tasted their cakes at least once.
So if you love their taste and want to invest in their business as a franchise owner, then here are all the details that you will need!
In this guide, we have disclosed how much a Nothing Bundt Cakes franchise owner makes, their sales figure, profit potential, and more. So keep reading to find out more!
About Nothing Bundt Cakes
Nothing Bundt Cakes is a popular bakery chain that specializes in selling handcrafted Bundt cakes in a variety of sizes and flavors, along with party supplies, gifts, and decor items.
Debbie Shwetz and Dena Tripp started this bakery in the year 1997 in Las Vegas with the aim to just impress their family and friends.
However, they soon realized that they could turn this into a business, and today, they have grown to 500 locations in more than 40 states and Canada.
Nothing Bundt Cakes offers franchises to individuals who have business management or marketing experience and a passion for running a business.
To be eligible for this franchise, the franchise candidate and their investor must have a combined net worth of $750K and $250K in liquid capital.
If you meet this basic requirement, then keep on reading to find out how much a Nothing Bundt cakes franchise owner makes.
((https://www.nothingbundtcakes.com/our-story/))
How Much Does A Nothing Bundt Cakes Franchise Owner Make?
The earnings of a Nothing Bundt Cakes franchise owner may vary from location to location.
However, based on the sales figure of 236 bakeries in 2020, a Nothing Bundt Cakes franchise owner makes sales of $1,307,280 per year on average.
This is a very broad figure, though; the lowest-performing franchise during this time made $458,000 in sales, and the highest-performing Nothing Bundt Cakes franchise made $3,108,000.
Nothing Bundt Cakes Franchise Average Revenue & Profit
As mentioned before, Nothing Bundt Cakes Franchise owners make revenue of $1,307,280 per year on average.
Based on the financial details in their Franchise Disclosure Document (FDD), a Nothing Bundt Cakes franchise owner can expect an average annual profit of $379,314, which amounts to an attractive franchise owner salary, given the impressive 29% profit margin.
Here’s how we have calculated this amount:
| Individual Franchise Statement | Amount ($) |
|---|---|
| Nothing Bundt Cake Franchise Revenue | $1,307,280 |
| COGS | $(304,596) |
| Royalty + marketing fees | $(117,655) |
| Rent | $(90,000) |
| Labor | $(519,457) |
| Nothing Bundt Cake Franchise Profit 29% Margin | $379,314 |
Nothing Bundt Cakes Franchise Failure Rate
To find out the failure rate of the Nothing Bundt Cakes franchise, let us look at the table below:
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2018 | 234 | 276 | +42 |
| 2019 | 276 | 318 | +42 |
| 2020 | 318 | 362 | +44 |
For the Franchised outlets:
- In 2018, the growth rate was (42)/234×100≈17.94%
- In 2019, the growth rate was (42)/276×100≈15.21%
- In 2020, the growth rate was (44)/318×100≈13.38%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2018 | 6 | 6 | 0 |
| 2019 | 6 | 13 | +7 |
| 2020 | 13 | 14 | +1 |
For the Company-Owned outlets:
- In 2018, the failure rate was (0)/6×100≈0%
- In 2019, the growth rate was (7)/6×100≈116.6%
- In 2020, the growth rate was (1)/13×100≈7.69%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 240 | 282 | +42 |
| 2020 | 282 | 331 | +45 |
| 2021 | 331 | 376 | +49 |
For Total outlets:
- In 2018, the growth rate was (42)/240×100≈17.5%
- In 2019, the growth rate was (45)/282×100≈15.95%
- In 2020, the growth rate was (49)/331×100≈14.08%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Nothing Bundt Cakes grew from 2018 to 2020, showing a growth rate between 17.94% and 13.38%. On the other hand, for company-owned outlets, the growth rate of Nothing Bundt Cakes is lying between 0% and 7.69% for the same period.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Nothing Bundt Cakes franchise has expanded from 2018 to 2020, showing a total growth rate between 17.5% and 14.08%.
Nothing Bundt Cakes Franchise Payback Period
To find out the payback period of the Nothing Bundt Cakes Franchise, let us do some calculations:
| AVERAGE INVESTMENT | $591,650 |
| AVERAGE REVENUE PER OWNER | $1,307,280 |
| AVERAGE PROFIT PERCENTAGE | 29% |
| AVERAGE PROFIT PER YEAR | $379,314 |
| AVERAGE PAYBACK PERIOD | 1.5 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 591650/379314 = 1.5 = 1.5 Years based on median
The average investment for a Nothing Bundt Cakes Franchise is $591,650.
With an average profit percentage of 29%, the average profit per year is $379,314.
This means that the average payback period for a Nothing Bundt Cakes Franchise is 1.5 years, and the total investment of $591,650 would be recovered within this period.
Is Nothing Bundt Cakes Franchise Profitable?
Yes, Nothing Bundt Cakes is a profitable franchise.
The profitability of any company is affected majorly by investment and sales, and in the case of the Nothing Bundt Cakes Franchise, both these factors favor it.
The initial investment that you would need to open a Nothing Bundt Cakes franchise is between $483,600 to $699,700, which is on the lower end, and franchise owners can make average profits of $379,314 in the first year itself.
This allows the investor to recover their investment amount within just 1.5 – 2.5 years, which is pretty good.
So all these things tell us that Nothing Bundt Cakes is a profitable business opportunity to invest in.
Nothing Bundt Cakes Franchise Earning Potential
As we already know, Nothing Bundt Cakes franchise owners make $1,307,280 per year on average and earn $379,314 in accordance with this number.
However, Nothing Bundt Cakes franchise locations have made as much as a whopping $3,108,000 in sales.
This means this franchise has the potential to earn higher profits as well.
The profitability of any location would vary based on the operating expenses, number of employees, services, demographics, etc.
What Is Nothing Bundt Cakes Best Known For?
Nothing Bundt cakes are known for their handcrafted, fresh Bundt Cakes that are available in a variety of flavors such as red velvet, carrot, lemon, etc.
Their cakes are adorned with thick foresting petals made with cream cheese and butter that give them their signature look.
You can get customized cakes from Nothing Bundt Cakes for a variety of occasions, be it for baby showers, Mother’s/father’s Day, or anniversaries; you name it.
The best part is that Nothing Bundt Cakes also sell party supplies, decor, and gift items, all at a pocket-friendly price.
Here are some of the bakery items which Nothing Bundt cake is best known for:
- Pumpkin Spice.
- Lemon Raspberry.
- Peppermint Chocolate Chip.
- Classic Vanilla.
- Strawberries & Cream.
- Lemon.
- Pecan Praline.
- Marble.
How Much Does Nothing Bundt Cakes Employee Earn?
The salary of a Nothing Bundt Cakes Employee may vary depending on their department, experience level, designation, skills, etc.
However, according to Indeed, the average pay for a Nothing Bundt Cakes employee ranges from $9.81 per hour for someone in an entry-level position to $22.77 per hour.
In yearly terms, the average salary of a Nothing Bundt Cakes employee ranges from $18,373 per year average for Kitchen Team Member to $100,000 per year on average for Commercial Manager.
Pros & Cons Of Nothing Bundt Cakes Franchise
Pros Of Nothing Bundt Cakes Franchise
- Low-cost investment.
- Recognized brand.
- Provides comprehensive training support.
- High Profitability.
- Offers territory protection.
Cons Of Nothing Bundt Cakes Franchise
- Charge 6% royalty and 5% marketing fees weekly.
- High initial franchise fee of $35,000.
- Need to employ 15-20 employees.
Wrap Up
Now that we have looked at the financials of the Nothing Bundt Cakes franchise, here’s what we can say:
Nothing Bundt Cakes require an average investment of $591,650, which is less than many other franchise opportunities. And in return, it can generate enough profits to recover the initial investment amount within just 1.5-2.5 years on average.
It also has a low failure rate and high-profit earning potential.
The eligible candidate can invest in this business along with an investor, and their combined net worth should be $750K and liquid capital of $250K.
All in all, we do not see any major red flags, and you can definitely consider investing in this franchise.
Frequently Asked Questions
What is the initial franchise fee of Nothing Bundt Cakes?
The initial franchise fee for Nothing Bundt Cakes Franchise is $35,000. This is comparatively on the higher end of the industry standard.
How much royalty and marketing fees does Nothing Bundt Cakes charge?
Nothing Bundt Cake charge 6% royalty and 5% marketing charge on a weekly basis.
How much does it cost to open a Nothing Bundt Cakes franchise?
It costs $483,600 to $699,700 to open a Nothing Bundt Cakes franchise.
((https://www.nothingbundtcakes.com/franchise-opportunities/?location=0062&fulfillment=05/16/2023))
How many locations does Nothing Bundt Cakes have?
There are over 500+ bakery locations in 40+ states.
Where is Nothing Bundt Cakes Headquartered?
The headquarters of Nothing Bundt Cakes is based in Atlanta, Georgia.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.