Where must each Nothing Bundt Cakes Bakery be operated from under a Development Rights Rider?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
We will require you to sign our then-current form of Franchise Agreement for each individual Bakery developed under a Development Rights Rider, the terms of which may materially differ from the terms of the Franchise Agreement attached to this disclosure document or the Franchise Agreement to which the Development Rights Rider is attached. Each Bakery will be operated: (i) from a distinct site located within the Development Area; and (ii) within its own Territory that we will define once the site for that Franchised Business has been approved. We will approve sites for additional Bakeries developed under your Development Rights Rider using our then-current site selection criteria.
Reserved Rights
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, each bakery developed under a Development Rights Rider must operate from a distinct site located within the Development Area. The Development Area itself is determined by Nothing Bundt Cakes and the franchisee, based on the number of bakeries the franchisee agrees to develop, demographics, and site availability.
Before a site is approved, Nothing Bundt Cakes must first accept the proposed site for each new bakery. After the site is accepted and the franchisee secures lawful possession of it, Nothing Bundt Cakes will determine the specific territory for that bakery. The franchisor's then-current standards for sites and territories will be used in this determination.
This means that while a Development Rights Rider grants the franchisee the right to develop multiple locations within a defined area, each individual bakery must have its own approved site and territory within that area. The franchisee needs to work closely with Nothing Bundt Cakes to ensure that each location meets the franchisor's criteria and secures the necessary approvals.