What must a Nothing Bundt Cakes franchisee do regarding defaults under agreements before transferring the franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
each of you hereby agree, in consideration of benefits received and to be received by each of you, jointly and severally, and for yourselves, your heirs, legal representatives and assigns, to be firmly bound by all of the terms, provisions and conditions of the foregoing Franchise Agreement, and any other agreement between Franchisee and Franchisor and/or its affiliates, and do hereby unconditionally guarantee the full and timely performance by Franchisee of each and every obligation of Franchisee under the aforesaid Franchise Agreement or other agreement between Franchisor and Franchisee, including, without limitation, any indebtedness to Franchisor or its affiliates of Franchisee arising under or by virtue of the aforesaid Franchise Agreement and that you (jointly and individually) will not permit or cause any change in the percentage of Franchisee owned, directly or indirectly, by any person, without first obtaining the written consent of Franchisor prior to said proposed transfer, which consent must not be unreasonably withheld, and without first paying or causing to be paid to Franchisor the transfer fee provided for in said Franchise Agreement, if applicable, and without otherwise complying with the transfer provisions of the foregoing Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes FDD, if a franchisee wants to transfer their franchise, they must first obtain written consent from Nothing Bundt Cakes. This consent cannot be unreasonably withheld. Additionally, the franchisee must pay the transfer fee outlined in the Franchise Agreement, if applicable.
Furthermore, the franchisee must comply with all other transfer provisions detailed in the Franchise Agreement. Most importantly, the franchisee must ensure full and timely performance of all obligations under the Franchise Agreement and any other agreements with Nothing Bundt Cakes or its affiliates. This includes settling any outstanding indebtedness to Nothing Bundt Cakes or its affiliates.
In practical terms, this means a prospective Nothing Bundt Cakes franchisee needs to be aware that transferring ownership isn't a simple process. It requires franchisor approval, payment of fees, and strict adherence to all contractual obligations. Any defaults or outstanding debts must be resolved before a transfer can proceed.