Will Nothing Bundt Cakes assume liability for any debt or obligation I incur in their name?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for: (a) selecting, retaining and paying your employees and complying with all state, federal, and local employment laws and regulations, including, without limitation, those related to hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, data privacy and security, supervision, and discipline of employees, paid or unpaid, full or part-time; (b) paying all invoices for goods and services used in connection with operating the Bakery; and (c) determining whether, and on what terms, to obtain any financing or credit which you deem advisable or necessary to establish and operate the Bakery. You agree to pay all current obligations and liabilities to suppliers, lessors, and creditors on a timely basis. You agree to indemnify us in the event we are held responsible for your debts if we elect to pay your obligations in order to preserve the relationship between
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, as a franchisee, you are solely responsible for all debts and obligations incurred in operating your bakery. This includes selecting, retaining, and paying your employees, as well as complying with all employment laws and regulations. You are also responsible for paying all invoices for goods and services used in connection with operating the bakery and determining whether to obtain financing or credit.
Nothing Bundt Cakes will not assume liability for any debt or obligation you incur. You are obligated to pay all current liabilities to suppliers, lessors, and creditors on a timely basis. This means that you must manage your finances carefully and ensure that you have sufficient funds to cover all of your expenses. Failure to do so could result in financial difficulties and potential legal action from creditors.
Furthermore, you agree to indemnify Nothing Bundt Cakes if they are held responsible for your debts, should they elect to pay your obligations to preserve relationships with suppliers or other parties. This underscores the importance of maintaining good financial standing and fulfilling your obligations independently. It is a standard practice in franchising that franchisees are responsible for their own debts and obligations, as they are operating as independent business owners.