Does the Nothing Bundt Cakes franchise agreement specify who 'we' refers to in section 2.1?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
and standards; (h) you fail to procure or maintain any licenses, certifications, or permits necessary for the operation of your Bakery; (i) you fail to notify us of any change in your banking relationship, including changes to banking institutions or account numbers, or if you siphon |
| 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)
The 2025 Franchise Disclosure Document for Nothing Bundt Cakes does not explicitly define who "we" refers to within section 2.1 of the franchise agreement. However, Item 17, which covers renewal, termination, transfer, and dispute resolution, uses "we" throughout to describe actions or rights of the franchisor.
Specifically, in the context of franchise termination, the FDD states circumstances under which "we" (the franchisor) has the right to terminate the Franchise Agreement. These include scenarios where the franchisee fails to comply with the agreement, misuses marks or confidential information, or fails to maintain required insurance. Additionally, the document outlines conditions for transfer of the franchise, noting that "we" must provide prior written consent, and lists conditions under which "we" will approve a proposed transfer.
Given the context of Item 17, it is reasonable to infer that "we" refers to Nothing Bundt Cakes Franchising, LLC, the franchisor. However, because the FDD does not provide an explicit definition, prospective franchisees should seek clarification from the franchisor to confirm the exact legal entity or entities to which "we" refers throughout the franchise agreement, especially in section 2.1. This clarification is crucial for understanding the full scope of the franchisor's rights and responsibilities.