Who determines whether an entity constitutes a National Account for Nothing Bundt Cakes?
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, Nothing Bundt Cakes has the sole discretion to determine whether an entity qualifies as a National Account. This determination is made by Nothing Bundt Cakes, not the franchisee.
A National Account can include various entities such as those that own or manage 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 to be performed is not a factor in this determination. A National Account may also encompass a gifting program operated by Nothing Bundt Cakes or through other franchisees, licensees, or third parties, which provides products to locations and clientele both within and outside a franchisee's territory.
This means that Nothing Bundt Cakes retains control over large-scale accounts and distribution channels, which could impact a franchisee's potential customer base and revenue. The franchisee is not entitled to compensation for work performed by others within their territory related to these National Accounts. Prospective franchisees should understand that Nothing Bundt Cakes reserves the right to manage these accounts independently, and franchisees will not have control over or receive direct benefits from these National Accounts within their territory.