What is the purpose of the amendment to the Nothing Bundt Cakes Franchise Agreement required by the state of Maryland?
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.
As you know, NBC Franchisor LLC (the "Franchisor") and you are preparing to enter into a Franchise Agreement for the establishment and operation of a "Nothing Bundt Cakes" Bakery. The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker"), that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, the Franchisee Disclosure Acknowledgment Statement should not be completed if the offer or sale of the franchise is subject to state franchise disclosure laws in Maryland. This acknowledgement also does not apply if the franchise is to be operated in, or if the franchisee is a resident of, Maryland.
This means that Nothing Bundt Cakes franchisees in Maryland are exempt from completing the Franchisee Disclosure Acknowledgment Statement. This form is used by Nothing Bundt Cakes to determine if any unauthorized statements or promises were made to the franchisee by the franchisor's employees or brokers that were not disclosed in the Franchise Disclosure Document (FDD) or that may be untrue, inaccurate, or misleading.
By not requiring Maryland franchisees to complete this form, Nothing Bundt Cakes is complying with Maryland's franchise laws, which may have specific requirements for disclosures and acknowledgments in franchise agreements. Prospective franchisees in Maryland should carefully review the FDD and franchise agreement with a franchise attorney to ensure they understand their rights and obligations under Maryland law.