What conditions must be met for Nothing Bundt Cakes to review and approve a lease?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
in 90 days of signing the Franchise Agreement. Failure to do so may result in termination of your Franchise Agreement. (Sections 4, 5.1 of the Franchise Agreement; Sections 3 and 6 of the Development Rights Rider).
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- Lease Review. We must review and approve your lease terms, which we will condition on: (a) you and your landlord signing a Collateral Assignment of Lease, in the form attached as Exhibit 2 to the Franchise Agreement; (b) the economic terms of the Lease; and (c) your full payment of the Franchise Fee. (Section 4.2 and Exhibit 2 of the Franchise Agreement). We reserve the right to require you to pay us or our designated suppliers a fee of $3,000 to cover the costs associated with site selection, non-legal lease review, and a fee of $500 to review of your architectural, mechanical, electrical and plumbing drawings and plans, necessary for building out the Bakery. If your lease does not include the Coll
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 42–52)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the franchisor must review and approve the lease terms for the bakery location. This approval is contingent upon three specific conditions. First, both the franchisee and the landlord must sign a Collateral Assignment of Lease, using the form attached as Exhibit 2 to the Franchise Agreement. Second, the economic terms of the lease must be acceptable to Nothing Bundt Cakes. Finally, the franchisee must have fully paid the Franchise Fee.
Nothing Bundt Cakes also has the right to charge fees for site selection and lease review. Specifically, they may require the franchisee to pay $3,000 to cover the costs associated with site selection and non-legal lease review. Additionally, there is a $500 fee for reviewing architectural, mechanical, electrical, and plumbing drawings and plans necessary for building out the bakery.
Furthermore, if the lease does not include the Collateral Assignment of Lease in the specified form or if there are other significant deviations that necessitate additional review, Nothing Bundt Cakes reserves the right to charge the franchisee for reasonable attorney's fees incurred during the review process. This implies that franchisees should ensure their lease agreements closely align with the franchisor's requirements to avoid unexpected legal expenses.