Can Nothing Bundt Cakes, its affiliates, or a third party be the only approved supplier of an item?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no obligation to approve any particular product, services, or source.
If you do not receive our approval within thirty (30) days after submitting all of the information that we request, the request will be deemed disapproved.
We and our affiliates have the right to receive payments from suppliers because of their dealings with you and other franchisees and to use all amounts we receive without restriction (unless instructed otherwise by the supplier) for any purposes we deem appropriate.
We may require you to purchase any previously unapproved product or service from our approved or designated supplier.
Nothing herein will require us to approve an unreasonable number of suppliers for a given item, which approval might, in our reasonable judgment, result in higher costs or prevent the effective or economical supervision of approved suppliers.
We may revoke our approval of particular products or suppliers when we determine, in our sole discretion, that such products or suppliers no longer meet our standards.
Upon receipt of written notice of revocation, you must cease purchasing products from such suppliers.
You must use products purchased from approved suppliers solely in connection with the operation of your Bakery and not for any competitive business purpose.
- (d) System Suppliers.
We may establish business relationships, from time to time, with suppliers who may produce, among other things, certain food and beverage ingredients, finished products, baking kits and equipment, furnishings, fixtures, equipment and inventory according to our proprietary standards and specifications, or private label goods we authorize for sale by System franchisees ("System Suppliers").
You recognize that such products are essential to the operation of the Bakery and to the System generally.
You further recognize that your failure to pay System Suppliers may interfere with such suppliers' willingness to supply the System, which may result in other System franchisees' inability to obtain product or ability to obtain product only on less favorable credit terms.
Accordingly, you agree to pay System Suppliers as and when due.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, Nothing Bundt Cakes does not have to approve a large number of suppliers for a particular item if it could increase costs or prevent effective supervision of the suppliers. Nothing Bundt Cakes can require franchisees to purchase previously unapproved products or services from an approved or designated supplier.
Nothing Bundt Cakes and its affiliates can receive payments from suppliers based on the supplier's dealings with franchisees. Unless the supplier instructs otherwise, Nothing Bundt Cakes can use these payments without restriction.
Nothing Bundt Cakes may establish relationships with System Suppliers who produce food and beverage ingredients, finished products, baking kits, equipment, furnishings, and private label goods. Franchisees must pay System Suppliers when payments are due. Nothing Bundt Cakes can also revoke approval of particular products or suppliers if they no longer meet the brand's standards, and franchisees must stop purchasing from them upon written notice.