What form is the Collateral Assignment of Lease for Nothing Bundt Cakes?
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).
-
- 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).
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's 2025 Franchise Disclosure Document, the Collateral Assignment of Lease must be in the form attached as Exhibit 2 to the Franchise Agreement. Before a Nothing Bundt Cakes location can open, the franchisor must review and approve the lease terms. This approval is conditional upon the franchisee and landlord signing the Collateral Assignment of Lease in the specified form.
If the lease does not include the Collateral Assignment of Lease in the form set forth in Exhibit 2, or if there are other material deviations in the lease that require review, Nothing Bundt Cakes reserves the right to charge the franchisee for any reasonable attorney's fees incurred during the review process. This ensures that the lease aligns with the franchisor's standards and protects their interests.
For a prospective franchisee, this means they must ensure that the lease includes the Collateral Assignment of Lease exactly as it is presented in Exhibit 2 of the Franchise Agreement. Any deviations could lead to additional legal fees and potential delays in the approval process. It is crucial to work closely with both the landlord and the franchisor to ensure compliance with these requirements.