Nothing Bundt Cakes, the beloved bakery brand renowned for its handcrafted Bundt cakes and fan-favorite flavors, is taking a major leap forward in Southern California. The company has announced the sale of nine company-owned bakeries in the San Diego market to FS Investors, a strategic move designed to unlock aggressive expansion in the region.
But this is more than a simple transaction. It’s a full-fledged growth play. As part of the agreement, FS Investors has also signed on to develop 16 additional bakery locations throughout the San Diego area, with a vision to more than double the brand’s footprint within the area in the coming years.
“Our focus at Nothing Bundt Cakes is to accelerate growth and build upon the record that we set of over 100 new bakeries in 2024,” said Dolf Berle, CEO of Nothing Bundt Cakes. “Selling our San Diego company-owned bakeries to FS Investors gives them a platform from which they can build a significant number of new bakeries in this region. FS Investors brings deep knowledge of the San Diego market, a strong cultural alignment with Nothing Bundt Cakes, and a commitment to growth.”
A Sweet Opportunity for San Diego
FS Investors, a local group with deep ties to the San Diego community, brings a hands-on approach and regional expertise to the table. These are qualities that Nothing Bundt Cakes believes will drive success as the brand continues to scale.
The San Diego region, with its mix of suburban family neighborhoods, growing millennial population, and a strong culture of supporting local businesses, offers fertile ground for franchise growth. The area’s year-round tourism and event-driven economy also make it a strategic market for a brand known for celebration-themed desserts.
“As owners and operators who live in the San Diego area, we are tremendously excited to add the Nothing Bundt Cakes brand to our family of companies,” said a spokesperson for FS Investors. “The opportunity to be owners in this fast-growing concept—with strong return-on-capital characteristics for new bakery builds—is very exciting for us. We look forward to bringing joy to the San Diego community through this award-winning product and guest experience.”
FS Investors’ move also signals a broader trend in franchising, where experienced regional operators are increasingly investing in proven concepts with strong unit economics and emotional brand connection. The group’s decision to develop 16 more bakeries points to long-term confidence in both the market and the model.
Now with nearly 700 locations across the U.S. and Canada, Nothing Bundt Cakes has carved out a sweet spot in the specialty bakery segment. The company credits its strong unit-level economics, continuous product innovation, and loyal consumer base as the driving forces behind its sustained momentum.
Why Franchisors Sell Corporate Units
For a fast-growing brand like Nothing Bundt Cakes, selling corporate-owned locations to a franchisee isn’t about offloading assets. It’s a strategic move rooted in accelerating expansion, increasing operational focus, and deepening local market engagement.
In general; Franchisors often sell company-owned units to unlock capital that can be reinvested into broader brand initiatives such as marketing, innovation, or support infrastructure. In many cases, experienced franchisees bring local market expertise and operational agility that can drive performance at the unit level. Sometimes, exceeding what’s possible from corporate-managed locations.
This approach also fosters stronger alignment between the brand and its operators. By transferring ownership to a franchisee with skin in the game, the company ensures that its bakeries are led by people with a vested interest in the success of each location. It’s especially effective in regions like San Diego, where understanding the nuances of the community can give franchisees a competitive edge.
In this case, FS Investors’ familiarity with the region and their long-term development commitment made them a natural partner for Nothing Bundt Cakes as it shifts from corporate ownership to a locally driven franchise model in Southern California.
As FS Investors prepares to build out the San Diego market, this partnership represents not just a transaction; but a cornerstone in Nothing Bundt Cakes’ mission to bring more joy, one Bundt at a time.
