Is a Nothing Bundt Cakes franchisee required to sign agreements directly with 3PD Providers?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
If a franchisee is selected by a 3PD Provider to fulfill an order, the franchisee will be obligated to satisfy the order in accordance with standards prescribed by us and the 3PD Provider from time to time. Further, the franchisee will agree that it will, if required, sign agreements directly with 3PD Providers that will govern the franchisee's participation in our 3PD Provider and 2PD program and that the franchisee
will be bound by the terms and conditions of our agreements with each of the 3PD Providers. Subject to additional procedures, rules and policies adopted by us, 3PD Providers will collect all funds from Guests ordering through their online platforms. The 3PD Providers will remit to the franchisee the purchase price for the products purchased less the 3PD Provider's commission and other fees and charges. We reserve the right to amend, modify and even terminate any 3PD Provider or 2PD program, but you are obligated to participate in any such Provider program in accordance with its current terms as long as it remains in effect.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, franchisees may be required to sign agreements directly with Third-Party Delivery (3PD) Providers. If a Nothing Bundt Cakes franchisee is selected by a 3PD Provider to fulfill an order, the franchisee must fulfill the order according to the standards set by both Nothing Bundt Cakes and the 3PD Provider.
These agreements govern the franchisee's participation in Nothing Bundt Cakes' 3PD Provider and 2PD program. The franchisee is also bound by the terms and conditions of Nothing Bundt Cakes' agreements with each of the 3PD Providers. 3PD Providers collect funds from guests ordering through their online platforms and remit the purchase price to the franchisee, minus the 3PD Provider's commission, fees, and charges.
Nothing Bundt Cakes retains the right to modify or terminate any 3PD Provider or 2PD program. However, franchisees are obligated to participate in any such program as long as it remains in effect. This means a franchisee must stay current with the specific requirements of each 3PD provider that Nothing Bundt Cakes uses, and that the franchisee is responsible for understanding the legal terms in those separate agreements.