factual

What is the purpose of the 'Section In' column in the Nothing Bundt Cakes FDD table?

Nothing_Bundt_Cakes Franchise · 2025 FDD

Answer from 2025 FDD Document

PROVISION SECTION IN SUMMARY
FRANCHISE OR OTHER AGREEMENT
"Transfer" by you – definition 17.2 and 17.3 of Franchise Agreement pledge or transfer of any fractional portion of your voting stock, or any increase in the number of outstanding shares of your voting stock which results in a change in ownership; (ii) if you are a partnership, upon the assignment, sale, pledge or transfer of any fractional partnership ownership interest; or (iii) if you are a limited liability company, upon any assignment, sale, pledge or transfer of any fractional portion of any interest in the limited liability company.
l. Our approval of transfer by franchisee 17.2 and 17.4 of Franchise Agreement and 9 of Development Rights Rider You may not transfer any rights in the franchise without our prior written consent. We have the right to condition our approval of any sale, transfer, assignment or encumbrance as described below. Your development rights under Development Rights Rider are not assignable.
m. Conditions for our approval of transfer 17.4 of Franchise Agreement We will approve a proposed transfer if: (i) all of your accrued monetary obligations to us, our affiliates, and our approved and designated suppliers have been paid; (ii) all existing defaults under the Franchise Agreement have been cured; (iii) you execute a general release in favor of us and our affiliates; (iv) you provide us a copy of the executed purchase agreement; (v) the transferee meets our qualifications; (vi) the transferee executes our then-current Franchise Agreement for the remaining unexpired term of the Franchise Agreement; (vii) you pay us a $10,000 transfer fee in the event of a transfer of the Bakery or $5,000 in the event of a transfer of the ownership interests in franchisee; (viii) the transferee satisfactorily completes our training program; (ix) you comply with the post term provisions of the Franchise Agreement; (x) the transferee obtains all necessary licenses and permits required to operate the Bakery; (xi) to the extent required by the terms of any leases or other agreements, the lessors or other parties must have consented to the proposed transfer; (xii) the transfer is made in compliance with all applicable laws; (xiii) the purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation of the Bakery and performance under its Franchise Agreement; (xiv) you must request that we provide the prospective transferee with our current form of disclosure document and we shall not be liable for any representations not included in the disclosure document; (xv) our approval of the transfer shall not constitute a waiver of any claims we may have against the transferring party; (xvi) we shall have the right to disclose to any prospective transferee such revenue reports and other financial information concerning you and your Bakery as you have supplied us; and (xvii) we may withhold or condition our consent to any transfer as we deem appropriate based on the circumstances of the transfer or otherwise.
PROVISION SECTION IN SUMMARY
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FRANCHISE OR OTHER AGREEMENT The failure to comply with any of the aforementioned conditions may result in our disapproval of the transfer at any time.
n. Our right of first refusal to acquire your business 17.7 of Franchise Agreement We can match any offer for the franchised business. We will notify you within ten (10) business days after receiving notice from you whether we wish to exercise our right to purchase your business.
o. Our option to purchase your business 15.2 of Franchise Agreement Upon termination or expiration of your agreement, for whatever reason, we have the option to purchase the assets of your business at book value.
p. Your death or disability 17.5 of Franchise Agreement Upon your death or disability, your rights under the Franchise Agreement may pass to your heirs or legatees, provided that, within 90 days of your death or disability, they agree to assume your obligations under the Franchise Agreement, successfully complete our initial training program, and otherwise meet our satisfaction.
q. Non-competition covenants during the term of the franchise 16.1 of Franchise Agreement During the term of the Franchise Agreement, neither you, nor any member of your immediate family or the immediate family of your Owners who work at the business may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation: (i) own, maintain, engage in, be employed by, lend money to, extend credit to or have any interest in any other business which operates or licenses the sale of businesses which offer and sell cakes, baked goods, gift packages, novelty items, or any other goods or services authorized or offered for sale by System franchisees, provided this restriction does not apply to any other Bakery; or (ii) solicit the Bakery's Guests, any National Account or contact our suppliers or vendors for any competitive purpose. The Franchise Agreement provides a list of brands which sell cakes, cookies, baked goods, etc. which we designate as being competitive brands.
r. Non-competition covenants after the franchise is terminated or expires 16.2 of Franchise Agreement For a period of 2 years after the expiration and nonrenewal, transfer or termination of the Franchise Agreement, regardless of the cause, neither you, your Owners, nor any member of your immediate family or the immediate family of your Owners who work at the business may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation, (i) enter into any business competing in whole or in part with us in granting franchises or licenses to operate businesses which offer and sell cakes, baked goods, gift packages, novelty items, or any other goods or services authorized or offered for sale by System franchisees at the time the Franchise Agreement is terminated or expires and is not otherwise renewed; or (ii) own, maintain, engage in, lend money to, extend credit to, have any interest in, or be employed as an officer, director, executive, or principal of: (a) businesses which offer and sell cakes, baked goods, gift packages,
PROVISION SECTION IN SUMMARY
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 64–71)

What This Means (2025 FDD)

According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the 'Section In' column within the Item 17 table serves as a direct reference to specific sections within the Franchise Agreement or other related agreements. This allows a prospective franchisee to quickly locate the exact clause in the legal documents that pertains to the provision being described in the table.

For example, if a franchisee wants to understand the conditions under which Nothing Bundt Cakes will approve a transfer of the franchise, the 'Section In' column points them to '17.4 of Franchise Agreement'. This means the detailed stipulations regarding transfer approval can be found in section 17.4 of the actual Franchise Agreement document. Similarly, the section outlines Nothing Bundt Cakes' right of first refusal to acquire the franchisee's business, directing the reader to '17.7 of Franchise Agreement' for the full legal context.

This cross-referencing is a common practice in franchise disclosure documents. It helps franchisees easily navigate the often lengthy and complex legal agreements. By providing these specific references, Nothing Bundt Cakes aims to increase transparency and ensure that franchisees can readily access and understand their contractual rights and obligations. Franchisees should always consult the full referenced sections in the Franchise Agreement for complete details, as the table provides only a summary.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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