When is it permissible for Nothing Bundt Cakes to repurchase a franchisee's business in Washington?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT J TO THE DISCLOSURE DOCUMENT FRANCHISEE DISCLOSURE ACKNOWLEDGMENT STATEMENT
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)
Based on the 2025 Nothing Bundt Cakes Franchise Disclosure Document, Exhibit J to the Disclosure Document Franchisee Disclosure Acknowledgment Statement does not apply if the offer or sale of the franchise is subject to the state franchise disclosure laws in Washington. This acknowledgment also does not apply if the franchise is to be operated in Washington, or if the franchisee is a resident of Washington.
This means that the standard acknowledgment form, which aims to confirm that the franchisee isn't relying on unauthorized or misleading statements, isn't used in Washington due to the state's franchise laws. These laws likely provide specific protections or requirements that negate the need for this particular acknowledgment.
For a prospective franchisee in Washington, this implies that the franchise agreement and related legal documents will be governed by Washington's franchise laws, offering a potentially different set of rights and obligations compared to franchisees in states where the acknowledgment is required. It would be prudent for a potential Nothing Bundt Cakes franchisee in Washington to seek legal counsel to fully understand the implications of these state-specific laws on their franchise agreement.