Does a Nothing Bundt Cakes franchise grant the right to offer services via e-commerce?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
The grant of a franchise includes the right, but also the obligation to engage in e-commerce through our E-Commerce Program which includes our Website, our 2PD program, and other e-commerce platforms approved by us including, but not limited to, 3PD platforms. Pursuant to the E-Commerce Program, you must fulfill online orders Guests place which require pick-up, delivery, or shipping within your Territory pursuant to the terms we negotiate. You are required to offer delivery on the Website and other e-commerce platforms approved by us as well as offer delivery for phone and walk-in orders. The Bakery selected to fulfill an E-Commerce Program order will be determined solely by us or the third-party platform in accordance with algorithms that evaluate a number of different factors. Franchisees have no right to object or contest any decision made by us with respect to the Bakery selected to fulfill orders. All Guest payments will be remitted directly to the franchisee's designated bank account, net of any vendor's then-current credit card processing or other fees (the "Vendor Fee") and gateway fees, to administer the platform and process payments, which are subject to change. We have the right to change the products and services offered through any E-Commerce Program and the suggested retail price for such goods. We may prohibit a franchisee from participating in the E-Commerce Program if the franchisee is not compliant with the terms of the E-Commerce Program, its franchise agreement, the Operations Manual, or any other agreement with us or our affiliates and subsidiaries. We may change the user terms, approved e-commerce platforms, our vendors, and methods and times for payment under the E-Commerce Program at our discretion. If a franchisee refuses or fails to fulfill e-commerce orders, fails to offer delivery, fails to deliver goods or services meeting our standards and specifications, or is otherwise not in material compliance with its obligations under its franchise agreement, we may allow a Bakery outside of the franchisee's territory to fulfill the orders without any compensation, reimburse the Guest, provide gift certificates, or otherwise remedy the situation, and the franchisee will be responsible for our costs in doing so. As a franchisee, you must pay us or our designated supplier the then-current E-Commerce Program fees associated with building and maintaining the Website or other platform and fulfilling Guest orders. We may require a franchisee to ship cakes from your Bakery to locations outside of your Territory.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 63–64)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, franchisees are not only granted the right, but also obligated to participate in the E-Commerce Program. This program includes the Nothing Bundt Cakes website, their 2PD program, and other approved e-commerce platforms, including 3PD platforms. Franchisees are required to fulfill online orders placed by guests for pickup, delivery, or shipping within their designated territory, adhering to the terms negotiated by Nothing Bundt Cakes.
Franchisees must offer delivery services through the website and other approved e-commerce platforms, as well as for phone and walk-in orders. The specific bakery chosen to fulfill an e-commerce order is determined solely by Nothing Bundt Cakes or the third-party platform, using algorithms that consider various factors. Franchisees have no right to contest these decisions. Guest payments are directly remitted to the franchisee's bank account, after deducting vendor fees for credit card processing and gateway fees.
Nothing Bundt Cakes retains the right to modify the products and services offered through the E-Commerce Program, as well as the suggested retail prices. Non-compliance with the E-Commerce Program terms, the franchise agreement, the Operations Manual, or any other agreement may result in prohibition from participating in the program. Nothing Bundt Cakes may also change user terms, approved e-commerce platforms, vendors, and payment methods at its discretion.
If a franchisee fails to fulfill e-commerce orders, does not offer delivery, or fails to meet the required standards, Nothing Bundt Cakes may allow another bakery to fulfill the orders, reimburse the guest, or take other remedial actions, with the non-compliant franchisee responsible for the associated costs. Franchisees are also required to pay the then-current E-Commerce Program fees for building, maintaining the website, or other platform, and fulfilling guest orders. Nothing Bundt Cakes may also require franchisees to ship cakes to locations outside of their territory.