Does the Nothing Bundt Cakes Franchise Agreement outline specific provisions for dispute resolution?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| v. | Choice of forum | 19.5 and 19.13 of Franchise Agreement | All claims not subject to arbitration must be brought exclusively in the state or federal court of general jurisdiction located closest to where we have our (or, in the case of a transfer by us, the then current franchisor has its) principal business address when the action is commenced. Proceedings for injunctive relief will be subject to exclusive jurisdiction and venue of any court of general jurisdiction in Dallas, Texas, and the jurisdiction and venue of the United States District Court for the Northern District of Texas. Please see the State-Specific Addenda attached as Exhibit H to this disclosure document for further details. You agree that there will be no class actions. The parties agree to waive jury trials. |
| w. | Choice of law | 19.2 of Franchise Agreement | The Franchise Agreement is governed by the laws of the State of Texas. See the State Specific Addenda attached as Exhibit H to this disclosure document for further details. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 64–71)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, the Franchise Agreement does include specific provisions for dispute resolution. Specifically, Section 19.5 and 19.13 of the Franchise Agreement dictates the choice of forum for claims not subject to arbitration. These claims must be brought in the state or federal court closest to Nothing Bundt Cakes' principal business address. For injunctive relief, the exclusive jurisdiction and venue are in any court of general jurisdiction in Dallas, Texas, or the United States District Court for the Northern District of Texas. The document also refers to State-Specific Addenda attached as Exhibit H for further details.
Furthermore, the agreement stipulates that there will be no class actions, and both parties agree to waive jury trials, which is a common practice in franchising to reduce legal costs and time. Section 19.2 of the Franchise Agreement specifies that the laws of the State of Texas govern the Franchise Agreement, with additional details available in the State-Specific Addenda attached as Exhibit H.
These provisions are important for prospective Nothing Bundt Cakes franchisees as they outline the legal framework for resolving disputes with the franchisor. Understanding these terms can help franchisees anticipate the potential costs and processes involved in resolving conflicts, including where legal proceedings would take place and which state's laws would apply. It is crucial for potential franchisees to review Exhibit H, the State-Specific Addenda, to understand any additional state-specific regulations that may apply to dispute resolution.