If the prospective franchisee is a resident of Maryland, does the Franchisee Disclosure Acknowledgment Statement apply to the Nothing Bundt Cakes franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS ACKNOWLEDGEMENT SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
THIS ACKNOWLEDGEMENT SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE FRANCHISE IS TO BE OPERATED IN, OR IF YOU ARE A RESIDENT OF, CALIFORNIA OR MARYLAND.
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 does not apply to prospective franchisees who are residents of Maryland. This means that if you reside in Maryland, you are not required to complete the Acknowledgment.
The Franchise Disclosure Acknowledgment Statement is designed to confirm that the prospective franchisee understands the risks associated with purchasing a franchise and that they are not relying on unauthorized or misleading statements made during the negotiation process. However, certain states, including Maryland, have franchise disclosure laws that provide specific protections to franchisees.
Because Maryland has its own franchise laws, Nothing Bundt Cakes is not requiring franchisees residing in Maryland to complete the standard Franchisee Disclosure Acknowledgment Statement. This is likely because Maryland's franchise laws already address the issues covered in the acknowledgment, providing similar or greater protections to the franchisee.