What does Exhibit 6 pertain to in the Nothing Bundt Cakes Franchise Agreement?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT 6 TO THE NBC FRANCHISOR LLC FRANCHISE AGREEMENT PERSONAL GUARANTY
(see attached)
ARTICLE I PERSONAL GUARANTY
The undersigned persons (individually and collectively "you") hereby represent to NBC Franchisor LLC ("Franchisor") that you are either: (a) the general partner of [insert here the name of the franchisee entity] ("Franchisee"); (b) all of the shareholders, partners, limited partners, or members in the Franchisee; or (c) the spouse of Franchisee or Franchisee's owner whose financials were required in order for Franchisee to qualify for a Nothing Bundt Cakes® franchised bakery (a "Bakery"). In consideration of the grant by Franchisor to the Franchisee of a franchise pursuant to the franchise agreement to which this Personal Guaranty is attached (the "Franchise Agreement"), each of you hereby agree, in consideration of benefits received and to be received by each of you, jointly and severally, and for yourselves, your heirs, legal representatives and assigns, to be firmly bound by all of the terms, provisions and conditions of the foregoing Franchise Agreement, and any other agreement between Franchisee and Franchisor and/or its affiliates, and do hereby unconditionally guarantee the full and timely performance by Franchisee of each and every obligation of Franchisee under the aforesaid Franchise Agreement or other agreement between Franchisor and Franchisee, including, without limitation, any indebtedness to Franchisor or its affiliates of Franchisee arising under or by virtue of the aforesaid Franchise Agreement and that you (jointly and individually) will not permit or cause any change in the percentage of Franchisee owned, directly or indirectly, by any person, without first obtaining the written consent of Franchisor prior to said proposed transfer, which consent must not be unreasonably withheld, and without first paying or causing to be paid to Franchisor the transfer fee provided for in said Franchise Agreement, if applicable, and without otherwise complying with the transfer provisions of the foregoing Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, Exhibit 6 of the franchise agreement pertains to the Personal Guaranty.
Specifically, Exhibit 6 outlines that the undersigned persons, whether they are general partners, shareholders, or spouses of the franchisee, are representing to NBC Franchisor LLC that they are qualified for a Nothing Bundt Cakes franchised bakery. In consideration of the franchise granted to the Franchisee, each person agrees to be bound by all terms and conditions of the Franchise Agreement. This includes guaranteeing the full and timely performance of every obligation of the Franchisee under the agreement, such as any debt to the Franchisor or its affiliates.
Furthermore, the personal guaranty ensures that those signing will not change the ownership percentage of the Franchisee without prior written consent from Nothing Bundt Cakes. This consent must not be unreasonably withheld, and any applicable transfer fees as stated in the Franchise Agreement must be paid. The personal guaranty is a critical component of the franchise agreement, ensuring that the obligations of the franchisee are backed by the personal commitment of its owners and key stakeholders.