What are the consequences for a Nothing Bundt Cakes franchisee who misuses proprietary software?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
If you violate the in-term restrictive covenant set forth in Section 16.1 below, or if you knowingly distribute Products within another franchisee's territory in violation of Section 1.2 above.
- (j) Liens.
If a levy of writ of attachment or execution, or any other lien, is placed against you, any partnership, limited liability company, or corporation you create to operate the Bakery, or any of your principals or any of their assets which are not released or bonded against within thirty (30) days.
- (k) Insolvency.
If you or any of your principals guaranteeing your obligations under this Agreement become insolvent.
- (l) Abandonment.
If you voluntarily or otherwise abandon the Bakery.
The term "abandon" includes any conduct which indicates a desire or intent to discontinue operating the Bakery in accordance with the terms of this Agreement and will apply in any event if you fail to operate the Bakery as a Nothing Bundt Cakes® Bakery for a period of two (2) or more consecutive days without our prior written approval.
- (m) Proprietary Software.
If you misuse or make unauthorized use of any proprietary software we develop for use in connection with the System.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, a franchisee's misuse or unauthorized use of the proprietary software that Nothing Bundt Cakes develops for use in connection with its system can result in a breach of the franchise agreement.
Specifically, the FDD states that if a franchisee misuses or makes unauthorized use of any proprietary software developed for use in connection with the Nothing Bundt Cakes system, it can be grounds for termination of the franchise agreement. This software is intended to assist with accounting, business intelligence, KPI reporting, inventory, and point-of-sale functions. Nothing Bundt Cakes requires franchisees to obtain and install the necessary computer hardware and software to provide them with full and direct electronic access to all of the franchisee's data, software systems, security camera footage, and related information.
Nothing Bundt Cakes also requires franchisees to comply with all specifications and standards prescribed regarding the Proprietary Software Programs as provided from time to time in the Operations Manual. The franchisor must have independent, unlimited access to the information generated through the use of their Proprietary Software Programs, without compensation to the franchisee, and they may share revenue and other data concerning the franchisee's Bakery with other franchisees in the System. Franchisees are responsible for the acquisition, operation, maintenance and upgrading of the computer hardware and Software; and any and all consequences that may arise if the computer hardware and Software is not properly operated, maintained and upgraded. It is the franchisee's responsibility to ensure that they have and at all times maintain proper security applications and controls in place, including but not limited to anti-virus software and password logon protections.