Does the Nothing Bundt Cakes Franchise Agreement contain provisions for franchisees to acquire additional franchises within their territory or contiguous areas?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement does not contain any provisions under which you might receive any options, rights of first refusal or similar rights to acquire additional franchises within the Territory or in any contiguous areas.
Except, described in Item 1, we do not operate or franchise, or currently plan to operate or franchise, any business under a different trademark that sells or will sell goods or services similar to those that our franchisees sell. However, our affiliates, including the Affiliated Programs described in Item 1 and other portfolio companies that currently are or in the future may be owned by private equity funds managed by Roark Capital Management, LLC, may operate and/or franchise businesses that sell similar goods or services to those that our franchisees sell. Item 1 describes our current Affiliated Programs that offer franchises, their principal business addresses, the goods and services they sell, whether their businesses are franchised and/or company-owned, and their trademarks. All of these other brands (with limited exceptions) maintain offices and training facilities that are physically separate from the offices and training facilities of our franchise network. Most of the Affiliated Programs are not direct competitors of our franchise network given the products or services they sell, although some are, as described in Item 1. All of the businesses that our affiliates and their franchisees operate may solicit and accept orders from customers near your business. Because they are separate companies, we do not expect any conflicts between our franchisees and our affiliates' franchisees regarding territory, customers and support, and we have no obligation to resolve any perceived conflicts that might arise.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, the Franchise Agreement does not automatically grant franchisees options or rights to acquire additional franchises within their territory or in contiguous areas. However, Nothing Bundt Cakes offers a right of first refusal for establishing a bakery at specific locations known as ROFR Sites, such as mall food courts, fairs, and festivals, within a franchisee's territory, provided the franchisee meets certain conditions. These conditions include compliance with existing agreements, meeting the property owner's requirements, and fulfilling Nothing Bundt Cakes' criteria for multi-unit franchise ownership.
To exercise the right of first refusal for a ROFR Site, Nothing Bundt Cakes will provide written notice, and the franchisee must respond within the specified time, potentially executing the then-current franchise agreement and paying the current initial fee. If the franchisee declines or fails to meet the criteria, Nothing Bundt Cakes may offer the opportunity to others, including affiliates or other franchisees. This right is further detailed in Section 4.7 of the Franchise Agreement.
For franchisees seeking to expand more broadly, Nothing Bundt Cakes offers a Development Rights Rider, which allows franchisees to develop multiple bakery locations within a defined Development Area. To exercise these development rights, franchisees must comply with all agreements, meet performance requirements in existing franchise agreements, satisfy all monetary obligations, and pay an initial franchise fee of $45,000 for each additional bakery. They must also sign the then-current form of the Franchise Agreement, which may differ from the original agreement. Failure to meet the development schedule outlined in the Development Rights Rider can result in its termination, although franchisees retain rights to bakeries for which agreements are executed and payments made.