Who are the parties that must execute, seal, and deliver the Nothing Bundt Cakes addendum?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
the new legal entity's ownership is not completely identical to your ownership, you first must seek our approval for that new entity to develop and operate the proposed Bakery as an Approved Affiliate. We may refuse any such request if you and/or your owners do not (a) own and control at least eighty percent (80%) of the new entity's ownership interests and (b) have the authority to exercise voting and management control of the Bakery proposed to be owned by the new entity.
- (b) Form of Franchise Agreement. You (and/or your Approved Affiliates) will operate each Nothing Bundt Cakes® Bakery under a separate franchise agreement with us. The franchise agreement (and related documents, including Guaranty and Assumption of Obligations) that you and your owners (or your Approved Affiliate and its owners) must sign for each Bakery developed pursuant to this Rider will be our then-current form of franchise agreement (and related documents, including Guaranty and Assumption of Obligations), any or all terms of which may differ substantially and materially from any or all terms contained in the First Franchise Agreement, provided, however, that the initial franchise fee will be Forty-Five Thousand Dollars ($45,000) for the second and each subsequent Nothing Bundt Cakes® Bakery to be developed pursuant to this Rider.
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 agreement (and related documents, including Guaranty and Assumption of Obligations) that you and your owners (or your Approved Affiliate and its owners) must sign for each Bakery developed pursuant to this Rider will be our then-current form of franchise agreement (and related documents, including Guaranty and Assumption of Obligations). This means that the franchisee, the franchisee's owners (or the Approved Affiliate and its owners) and Nothing Bundt Cakes must sign the franchise agreement and related documents for each bakery developed under the rider.
This requirement ensures that all parties are legally bound to the terms and conditions outlined in the franchise agreement. It also clarifies that if the franchisee operates through an Approved Affiliate, the owners of that affiliate are also responsible for upholding the agreement. The rider grants potential development rights if the franchisee fully complies with its terms.
Prospective franchisees should carefully review the franchise agreement and related documents, including the Guaranty and Assumption of Obligations, to understand their rights and responsibilities. Franchisees should also seek legal counsel to ensure they fully understand the implications of signing these documents.