Does the Franchisee Disclosure Acknowledgment Statement for Nothing Bundt Cakes aim to confirm the franchisee understands the risks associated with purchasing a franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the Franchisee Disclosure Acknowledgment Statement is designed to confirm that the prospective franchisee understands the risks associated with purchasing a franchise. The franchisor, NBC Franchisor LLC, uses this document to ascertain that the franchisee fully understands that purchasing a franchise is a business decision with associated risks. They also want to confirm that the franchisee is not relying on any unauthorized oral statements, representations, promises, or assurances made during negotiations. This acknowledgment helps Nothing Bundt Cakes ensure franchisees are making informed decisions.
However, this acknowledgment is not applicable in certain states with franchise disclosure laws, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. Additionally, it does not apply if the franchise is to be operated in, or if the franchisee is a resident of, California or Maryland. This means that franchisees in those states may not be required to complete this specific acknowledgment, as they may be covered by state-specific protections and disclosures.
Furthermore, if a prospective franchisee is purchasing an existing Nothing Bundt Cakes bakery from a transferring franchisee, the information received from the transferring franchisee is not covered by this acknowledgment. The questions in the acknowledgment do not apply to any communications with the transferring franchisee, focusing instead on statements made by the franchisor or their authorized representatives. This distinction is important because the franchisor wants to ensure that the franchisee's understanding of the franchise opportunity is based on authorized information provided by Nothing Bundt Cakes itself.