Does the Nothing Bundt Cakes franchise require a Franchisee Disclosure Acknowledgment Statement?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS ACKNOWLEDGEMENT SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
THIS ACKNOWLEDGEMENT SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE FRANCHISE IS TO BE OPERATED IN, OR IF YOU ARE A RESIDENT OF, CALIFORNIA OR MARYLAND.
As you know, NBC Franchisor LLC (the "Franchisor") and you are preparing to enter into a Franchise Agreement for the establishment and operation of a "Nothing Bundt Cakes" Bakery. The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker"), that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
In the event that you are intending to purchase an existing "Nothing Bundt Cakes" Bakery from an existing Franchisee, you may have received information from the transferring Franchisee, who are not employees or representatives of Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, a Franchisee Disclosure Acknowledgment Statement is typically required. However, this requirement is waived if the offer or sale of the franchise is subject to state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. Additionally, the acknowledgment is not required if the franchise is to be operated in, or if the franchisee is a resident of, California or Maryland.
Nothing Bundt Cakes uses this acknowledgment to ensure that prospective franchisees understand that purchasing a franchise is a business decision with associated risks. The acknowledgment aims to confirm that franchisees are not relying on any unauthorized oral statements, representations, promises, or assurances made during negotiations that were not disclosed in the Franchise Disclosure Document.
This acknowledgment does not apply to information received from a transferring franchisee if the prospective franchisee is purchasing an existing Nothing Bundt Cakes bakery. The document emphasizes the importance of franchisees understanding the risks and relying only on authorized information from Nothing Bundt Cakes itself.
For a prospective franchisee, this means carefully reviewing the Franchise Disclosure Document and understanding the investment and operational requirements. It also highlights the importance of not relying on verbal assurances or promises that are not documented in the FDD or authorized by Nothing Bundt Cakes. If a prospective franchisee resides in or plans to operate in the listed states, they will not need to complete the Acknowledgment Statement.