When must a Nothing Bundt Cakes franchisee submit certificates of insurance as proof of insurance?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit certificates of insurance to us as proof of insurance before you sign a lease for your Bakery. You must deliver a complete copy of your then-prevailing policy of insurance within thirty (30) days following the delivery of the certificate of insurance. Further, you must provide to us Certificates of Insurance on an annual basis via FranConnect or the manner in which we prescribe. If you fail to comply with the minimum insurance requirements set forth herein or fail to provide evidence that you have obtained such insurance, we have the right to obtain such insurance and keep the same in force and effect, and you must pay us, on demand, the premium cost thereof and an administrative fee equal to eighteen percent (18%) of the cost of insurance.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, a franchisee must submit certificates of insurance as proof of insurance before signing a lease for their Bakery. Following the delivery of the certificate of insurance, the franchisee must deliver a complete copy of their then-prevailing insurance policy within thirty (30) days.
Furthermore, Nothing Bundt Cakes requires franchisees to provide Certificates of Insurance on an annual basis through FranConnect or another method they prescribe. This ongoing requirement ensures that franchisees maintain adequate insurance coverage throughout the term of their franchise agreement.
If a franchisee fails to meet the minimum insurance requirements or provide evidence of obtaining such insurance, Nothing Bundt Cakes reserves the right to obtain the necessary insurance to keep the coverage in effect. In such cases, the franchisee is obligated to pay Nothing Bundt Cakes, upon demand, the premium cost plus an administrative fee equal to eighteen percent (18%) of the insurance cost. This provision underscores the importance Nothing Bundt Cakes places on franchisees maintaining continuous and adequate insurance coverage, and ensures the brand is protected from potential liabilities.