Does the Nothing Bundt Cakes indemnification extend to claims by the franchisee's employees?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
Bakery personnel that you are their employer and that we, as the franchisor of Nothing Bundt Cakes, and our affiliates are not their employer or joint employer and do not engage in any employer-type activities for which only franchisees are responsible, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. You further acknowledge that we have no responsibility to ensure that the Bakery is developed and operated in compliance with all applicable laws, ordinances, and regulations, and that we shall have no liability in the event the development or operation of the Bakery violates any law, ordinance or regulation.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, franchisees are solely responsible for their employees. Nothing Bundt Cakes states that franchisees are the employer of their Bakery personnel, and Nothing Bundt Cakes and its affiliates are not the employer or joint employer.
The FDD specifies that franchisees are responsible for all employer-type activities, including employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. This delineation of responsibilities aims to protect Nothing Bundt Cakes from liabilities related to employment practices within the franchised bakeries.
Furthermore, the FDD states that Nothing Bundt Cakes has no responsibility to ensure the Bakery is developed and operated in compliance with all applicable laws, ordinances, and regulations, and that they shall have no liability if the development or operation of the Bakery violates any law, ordinance or regulation. This reinforces that the franchisee is responsible for compliance and any liabilities arising from non-compliance.