Does the Nothing Bundt Cakes Franchise Agreement have a section dedicated to the franchisee's right to termination?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer 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 | ||
| appointment of a trustee or receiver for you or the Bakery; (b) | |||
| proceedings are commenced to have you adjudicated bankrupt or to | |||
| seek your reorganization under any state or federal bankruptcy or | |||
| insolvency law, and such proceedings are not dismissed within 60 | |||
| days, or a trustee or receiver is appointed for you or the Bakery | |||
| without your consent, and the appointment is not vacated within 60 | |||
| days; or (c) you purport to sell, transfer or otherwise dispose of your | |||
| interest in the Franchise Business without our written approval. | |||
| We have the right to terminate the Franchise Agreement with notice | |||
| without providing you an opportunity to cure if: (a) you take part in | |||
| criminal acts or misconduct; (b) you commit fraud or make any | |||
| material misrepresentations; (c) you make any misrepresentations in | |||
| connection with the franchise application; (d) you fail to complete | |||
| our initial training program or any ongoing training program to our | |||
| satisfaction within the time frames we designate; (e) you receive two | |||
| or more written notices of default within any 12 month period; (f) | |||
| you materially breach any other agreement with us or our affiliates, | |||
| or your landlord, or threaten a material breach of such an agreement, | |||
| including any lease for the Approved Location, and fail to cure the | |||
| breach within any applicable cure period; (g) you misuse the Marks | |||
| or Confidential Information; (h) you violate any health, safety or | |||
| sanitation law; (i) you violate the in-term restrictive covenants of the | |||
| Franchise Agreement; (j) a lien or writ of attachment or execution is | |||
| placed against you and is not released or bonded against within 30 | |||
| days; (k) you become insolvent; (l) you abandon the Bakery; (m) you | |||
| misuse our proprietary software; (n) you fail to maintain required | |||
| insurance; |
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, Item 17 addresses termination of the franchise agreement. While the excerpt focuses on conditions under which Nothing Bundt Cakes can terminate the agreement, it does not specifically detail any rights the franchisee has to terminate the agreement. The document outlines various scenarios where Nothing Bundt Cakes can terminate the agreement with or without notice and opportunity to cure, depending on the nature of the breach or default.
Specifically, Nothing Bundt Cakes can terminate the Franchise Agreement without an opportunity to cure if the franchisee takes part in criminal acts or misconduct, commits fraud, makes misrepresentations, fails to complete training, receives multiple default notices, breaches agreements, misuses marks or confidential information, violates health or safety laws, violates restrictive covenants, faces liens, becomes insolvent, abandons the bakery, misuses proprietary software, fails to maintain insurance, or fails to comply with governmental notices. In other cases, such as failure to comply with the terms of the Franchise Agreement or other agreements, Nothing Bundt Cakes may provide a 30-day cure period before termination.
Since the provided FDD excerpts do not contain information regarding the franchisee's right to terminate, it is important for a prospective franchisee to ask Nothing Bundt Cakes about the conditions under which they, as the franchisee, can terminate the agreement. Understanding these conditions is crucial for making an informed decision about investing in a Nothing Bundt Cakes franchise.