Is the license of the Marks granted to a Nothing Bundt Cakes franchisee exclusive?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
ards and specifications are essential to the operation of a Nothing Bundt Cakes® Bakery and our System.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, commitments and understandings set forth herein, and subject to the terms and conditions of this Agreement, the parties agree as follows:
ARTICLE 1 GRANT OF FRANCHISE
1.1 Grant of Franchise.
We hereby grant, upon the express terms and conditions contained in this Agreement, and you hereby accept, a non-exclusive license to establish and operate one Bakery under the System and Marks, and the right to use the System and Marks to operate the Bakery. We have the right to supplement, improve, or otherwise modify the System from time to time at our discretion, and you must comply with all changes, which may include, without limitation, the offer and sale of new or different products and services.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, the franchise granted is non-exclusive. Specifically, Nothing Bundt Cakes grants a non-exclusive license to establish and operate one bakery under their system and marks. This means that Nothing Bundt Cakes retains the right to establish or license other franchisees or operate their own bakeries, potentially in the same market area as an existing franchisee, subject to the protected territory outlined in the agreement.
However, Nothing Bundt Cakes does provide a protected territory to franchisees. Except as otherwise provided, as long as the franchisee is compliant with the terms and conditions of the agreement, Nothing Bundt Cakes will not establish or license any third party the right to establish another Nothing Bundt Cakes bakery at any location within the protected geography granted to the franchisee after a location is chosen for the bakery and described in the Data Sheet, which is incorporated into the Franchise Agreement.
It is important to note that these territorial rights are limited and not exclusive in terms of marketing rights, delivery, or clientele. This implies that while Nothing Bundt Cakes will not establish a physical bakery within the franchisee's protected territory, they may still engage in marketing activities, offer delivery services, and target clientele within that territory through other channels. A prospective franchisee should carefully evaluate the defined protected territory and consider the potential impact of non-exclusive marketing and delivery rights when assessing the opportunity.