What is the purpose of the Site Selection Addendum for a Nothing Bundt Cakes franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
You must enter into the site selection addendum attached as Exhibit 1 to this Agreement, which will govern the parties' site selection obligations (the "Site Selection Addendum") upon signing this Agreement. You will be required to purchase or lease an Approved Location meeting our standards and specifications within ninety (90) days of the Effective Date (the "Approved Location"). If you have entered into an area development agreement or development rights rider to the Franchise Agreement, you must comply with the provisions of such agreement and/or rider, as the case may be regarding opening time frames. The Approved Location must be used solely to operate a Bakery, and not for any other purpose. OUR APPROVAL OF A LOCATION DOES NOT CONSTITUTE A REPRESENTATION, WARRANTY OR GUARANTEE OF THE COMMERCIAL VALUE OF YOUR LOCATION OR YOUR FINANCIAL SUCCESS IF YOU CHOOSE TO OPERATE A NOTHING BUNDT CAKES BAKERY AT THAT LOCATION.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, the Site Selection Addendum governs the obligations of both the franchisee and franchisor in selecting a location for the bakery. Upon signing the Franchise Agreement, the franchisee must also enter into the Site Selection Addendum, which is attached as Exhibit 1. Within 90 days of the agreement's effective date, the franchisee is required to secure an approved location that meets Nothing Bundt Cakes' standards. This location must be used solely for operating the bakery.
The franchisee is responsible for locating, evaluating, and selecting the bakery site. While Nothing Bundt Cakes will provide its criteria for site selection, including factors like population density, visibility, traffic flow, and size, the franchisor will not search for or select the site. The franchisee must submit all requested information to allow Nothing Bundt Cakes to assess the proposed site. Nothing Bundt Cakes has the right to reject any site that doesn't meet its criteria or to require the franchisee to acknowledge in writing if a chosen site is not recommended due to incompatibility with certain factors.
Before acquiring a site, the franchisee must submit a completed site review and a letter of intent. Nothing Bundt Cakes has 30 days to approve or disapprove the proposed site in its sole discretion, with approval only valid if expressly provided in writing. Nothing Bundt Cakes may offer site selection guidelines, consultation, and on-site evaluation, but is not required to provide on-site evaluations. If deemed necessary, Nothing Bundt Cakes may conduct one on-site visit at its cost. It is important to note that Nothing Bundt Cakes' approval of a location does not guarantee the commercial value or financial success of the bakery.