factual

Does the Nothing Bundt Cakes franchise agreement provide any examples of development obligations?

Nothing_Bundt_Cakes Franchise · 2025 FDD

Answer from 2025 FDD Document

PROVISION SECTION IN SUMMARY
FRANCHISE
OR OTHER
AGREEMENT
any portion of the Gross Sales of your Bakery into a bank account
not approved of by us or which is not accessible to us via EFT; (j)
you offer any unauthorized or unapproved products or services in
connection with the operation of your Bakery; or (k) you order or
purchase supplies from unapproved suppliers.
Except as stated for above, we have the right to terminate the
Franchise Agreement after providing you a 30-day cure period if you
fail to perform or comply with any one or more of the terms or
conditions of the Franchise Agreement or any other agreement with
us or our affiliates, including compliance with the Operations
Manual.
h. "Cause" defined 14.1 and 14.2 of The Franchise Agreement will automatically terminate without
notice or an opportunity to cure if: (a) you make an assignment for
– non-curable Franchise the benefit of creditors, file a voluntary petition in bankruptcy, are
defaults Agreement and 8
of Development adjudicated bankrupt or insolvent, file or acquiesce in the filing of a
petition seeking reorganization or arrangement under any federal or
Rights Rider state bankruptcy or insolvency law, or consent to or acquiesce in the
appoi

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 64–71)

What This Means (2025 FDD)

According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, specific examples of development obligations are not explicitly outlined in the provided excerpts. However, the document does reference a "Development Rights Rider," which suggests that development obligations are addressed within that specific agreement.

The excerpts detail termination conditions related to a Development Rights Rider. Specifically, the Franchise Agreement can be terminated without an opportunity to cure if a franchisee makes an assignment for the benefit of creditors, files for bankruptcy, or attempts to transfer interest in the franchise without written approval. These stipulations imply that franchisees with development rights have certain obligations they must meet to maintain their agreement.

Prospective Nothing Bundt Cakes franchisees should carefully review the Development Rights Rider to fully understand their development obligations, including timelines for opening new locations, performance metrics, and potential consequences for failing to meet those obligations. It is essential to discuss these obligations with the franchisor and seek legal counsel to ensure a clear understanding of the terms and conditions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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