What is the purpose of Exhibit 5 in the Nothing Bundt Cakes Franchise Agreement?
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.
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.
In the event that you are intending to purchase an existing "Nothing Bundt Cakes" Bakery from an existing Franchisee, you may have received information from the transferring Franchisee, who are not employees or representatives of Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
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, not Exhibit 5, serves as the Franchisee Disclosure Acknowledgment Statement. This acknowledgment is designed to confirm that prospective franchisees understand that purchasing a Nothing Bundt Cakes franchise is a business decision involving risks. It aims to verify that franchisees are not relying on any unauthorized or misleading statements made during negotiations that were not included in the Disclosure Document.
The acknowledgment requires franchisees to confirm that they understand the business risks associated with the franchise. It ensures they are not basing their decision on any verbal promises or assurances from the franchisor's representatives or brokers that haven't been officially authorized or disclosed. This step is crucial for Nothing Bundt Cakes to ensure transparency and prevent future disputes over misrepresented information.
However, the Franchisee Disclosure Acknowledgment Statement is not applicable to franchisees in certain states with franchise disclosure laws, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. Additionally, it does not apply if the franchise will operate in or if the franchisee is a resident of California or Maryland. This indicates that Nothing Bundt Cakes adheres to specific state regulations regarding franchise disclosures, providing additional protections to franchisees in those areas.