What condition applies to the Nothing Bundt Cakes premises before a transfer can occur?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to review, evaluate, and approve your lease for the Approved Location (the "Lease") prior to execution. We will condition our approval of any proposed Lease upon, among other things, you and your landlord's execution of a "Collateral Assignment of Lease" in the form attached as Exhibit 2 to this Agreement, which (i) grants us the right, but not the obligation, to assume the Lease upon (a) your default on the Lease, or (b) termination, transfer or expiration of this Agreement, and (ii) authorizes and requires your landlord to disclose to us, upon our request, sales and other information you have furnished to the landlord. If your lease does not include the Collateral Assignment of Lease in the form set forth in Exhibit 2, or if there are other material deviations in your lease that require our review, as we determine in our sole discretion, we reserve the right to charge you the reasonable attorneys' fees we incur in such review. You must deliver an executed copy of the Lease and the Collateral Assignment of Lease to us within fifteen (15) days of execution of the Lease.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, before a transfer can occur, Nothing Bundt Cakes has the right to review, evaluate, and approve the lease for the Approved Location. Nothing Bundt Cakes will condition their approval of any proposed Lease upon, among other things, the franchisee and their landlord's execution of a Collateral Assignment of Lease.
The Collateral Assignment of Lease grants Nothing Bundt Cakes the right, but not the obligation, to assume the lease upon the franchisee's default on the lease, or termination, transfer, or expiration of the Franchise Agreement. It also authorizes and requires the landlord to disclose to Nothing Bundt Cakes, upon request, sales and other information the franchisee has furnished to the landlord.
If the lease does not include the Collateral Assignment of Lease in the form set forth in Exhibit 2, or if there are other material deviations in the lease that require review, Nothing Bundt Cakes reserves the right to charge the franchisee the reasonable attorneys' fees they incur in such review. The franchisee must deliver an executed copy of the Lease and the Collateral Assignment of Lease to Nothing Bundt Cakes within fifteen (15) days of execution of the Lease.