How does Nothing Bundt Cakes define a 'National Account'?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the description of Non-Traditional Sites in the Reserved Rights section above, we have the right to enter into agreements, arrangements, and programs, or to directly provide Products to, (i) Non-Traditional Sites, wherever located, and (ii) "National Accounts," wherever located. A National Account may include, but is not limited to, an entity that, on their own or through agents, franchisees, or licensees, or other third parties, own, manage, control or otherwise represent multiple commissary-style locations, as well as retail or wholesale outlets, novelty gift shops, large commissaries, corporations, organizations, government entities, and health and school systems, without regard to the aggregate contract amount of the services to be performed. A National Account may also include a gifting program that we operate ourselves or through other franchisees, licensees, or third parties, to provide Products to locations and clientele within or outside of your Territory. We will determine whether an entity constitutes a National Account at our sole discretion, and you disclaim any compensation or consideration for work performed by others in your Territory pursuant to the terms of the Franchise Agreement (Section 4.7).
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, a 'National Account' includes entities that, either directly or through representatives, manage or control multiple commissary-style locations, retail or wholesale outlets, novelty gift shops, large commissaries, corporations, organizations, government entities, and health and school systems. The aggregate contract amount of services performed is not a factor in this definition.
Additionally, Nothing Bundt Cakes specifies that a National Account can also encompass a gifting program, whether operated by Nothing Bundt Cakes itself, its franchisees, licensees, or other third parties. This program would provide products to locations and clientele both within and outside a franchisee's territory.
Nothing Bundt Cakes retains the sole discretion to determine whether an entity qualifies as a National Account. As a franchisee, you would not receive any compensation for work performed by others within your territory that is related to a National Account, highlighting a potential impact on revenue depending on the prevalence of such accounts in your area.