Will a Nothing Bundt Cakes franchisee receive an exclusive territory?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
ou comply with our relocation criteria and find a new location approved by us within 30 days of the fire or casualty. If you relocate your Bakery without our prior written consent, we shall have the right immediately to terminate the Franchise Agreement.
We will grant you a protected area within which we will not open another Bakery under the Marks and System (the "Territory"), as identified in Data Sheet to the Franchise Agreement. The Territory's boundary around your Approved Location will depend on your market area, including population density, drive times, and similar factors. There is no set minimum or maximum radius. We do not guarantee a certain population density in your Territory. Depending on the location of your Approved Location and your specific market and circumstances, the radius will be measured in terms of miles or number of blocks from the Approved Location. However, if you operate in a ROFR Site (based upon our authorizing you to do so), your Territory might be limited to the physical footprint of the specific site/premises. Otherwise, your Territory will exclude all Non-Traditional Sites (as defined below) physically located within the Territory. There are no restrictions on our or our Affiliate's right to operate and grant others the right to operate Approved Locations at Non-Traditional Sites. Upon renewal of your Franchise Agreement, we
reserve the right to modify and/or reduce the size of your Territory to be consistent with our then-current criteria for determining the size of a franchisee's territory.
You will not receive an exclusive territory. Your limited territorial rights will not be exclusive in terms of marketing rights, delivery, or clientele. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We have the right to open or license others the right to open a non-traditional site within the Territory, provided however, we will give you a right of first refusal to establish and operate a Bakery at any ROFR Site, which we define as any mall (indoor and outdoor) food courts, food halls, fairs, festivals, and locations or events designed for large gatherings.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Nothing Bundt Cakes grants a protected area where they will not open another bakery under the same brand, this territory is not exclusive in terms of marketing rights, delivery, or clientele. The size of the territory depends on factors like market area, population density, and drive times, with no guaranteed minimum or maximum radius.
Franchisees may face competition from other franchisees, company-owned outlets, alternative distribution channels, and competitive brands controlled by Nothing Bundt Cakes. The franchisor retains the right to open or license non-traditional sites within the territory, such as those in malls or food courts; however, Nothing Bundt Cakes will offer the franchisee a right of first refusal to operate a bakery at any of these ROFR (Right of First Refusal) sites.
Nothing Bundt Cakes also maintains the right to sell and distribute products through alternative channels like e-commerce, wholesale, supermarkets, and direct marketing, without compensating the franchisee. Furthermore, Nothing Bundt Cakes can engage in agreements with National Accounts and Non-Traditional Sites, potentially impacting a franchisee's market. Upon renewal of the Franchise Agreement, Nothing Bundt Cakes reserves the right to modify or reduce the size of the franchisee's territory based on their then-current criteria.