Where must all claims not subject to arbitration be brought for Nothing Bundt Cakes franchises?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| v. | Choice of forum | 19.5 and 19.13 of Franchise Agreement | All claims not subject to arbitration must be brought exclusively in the state or federal court of general jurisdiction located closest to where we have our (or, in the case of a transfer by us, the then current franchisor has its) principal business address when the action is commenced. Proceedings for injunctive relief will be subject to exclusive jurisdiction and venue of any court of general jurisdiction in Dallas, Texas, and the jurisdiction and venue of the United States District Court for the Northern District of Texas. Please see the State-Specific Addenda attached as Exhibit H to this disclosure document for further details. You agree that there will be no class actions. The parties agree to waive jury trials. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 64–71)
What This Means (2025 FDD)
According to Nothing Bundt Cakes's 2025 Franchise Disclosure Document, any claims against the company that are not subject to arbitration must be brought in a specific court. The FDD states that these claims must be brought exclusively in the state or federal court of general jurisdiction that is located closest to where Nothing Bundt Cakes has its principal business address. This location is determined at the time the action is commenced, or in the case of a transfer by Nothing Bundt Cakes, where the current franchisor has its principal business address.
However, there is an exception for proceedings seeking injunctive relief. These proceedings are subject to the exclusive jurisdiction and venue of any court of general jurisdiction in Dallas, Texas, as well as the jurisdiction and venue of the United States District Court for the Northern District of Texas.
Furthermore, the FDD stipulates that franchisees waive their right to participate in class action lawsuits and also waive their right to a jury trial. This means that any legal disputes with Nothing Bundt Cakes will be handled individually and decided by a judge rather than a jury. Prospective franchisees should be aware of these conditions, as they limit the venues and legal options available in case of a dispute.