What is the relationship between the Franchise Agreement and the Site Selection Addendum for a Nothing Bundt Cakes franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
ny sale of the Collateral may be conducted by us in a commercially reasonable manner. Reasonable notification of the time and place of any sale shall be satisfied by mailing to you pursuant to the notice provisions set forth above.
Effective Date. IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this Agreement thisof20 by which Agreement shall be effective as of the FRANCHISOR: NBC FRANCHISOR LLC
NBC FRANCHISOR LLC FRANCHISE AGREEMENT EXHIBIT 1 SITE SELECTION ADDENDUM
(see attached)
EXHIBIT 1 TO THE NBC FRANCHISOR LLC FRANCHISE AGREEMENT SITE SELECTION ADDENDUM
This agreement is entered into this day of, 20 by and between NBC FRANCHISOR LLC ("we", "us" or "our") and ("you"). BACKGROUND On, the parties entered into a franchise agreement (the "Franchise Agreement") pursuant to which you obtained the right and undertook the obligation to operate a Nothing Bundt Cakes® bakery (the "Bakery"). The parties desire to supplement its terms as set forth below. AGREEMENT NOW THEREFORE, the parties agree as follows:
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- Within ninety (90) days after the effective date of the Franchise Agreement, you must purchase or lease, at your expense, for the Bakery (once approved by us, the "Site"), which we must approve as hereinafter provided. The Site must be within the following territory: (the "Site Selection Territory"). Time is of the essence.
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- Before your acquisition of a Site by purchase or lease, you must submit to us, in the form we specify, a completed site review and any other information or materials we may reasonably require, and a letter of intent or other evidence satisfactory to us which confirms your favorable prospects for obtaining a site within thirty (30) days after execution of this Site Selection Addendum. We will have thirty (30) days from the receipt of such information from you to approve or disapprove, in our sole discretion, any proposed site as a Site. No proposed site will be deemed approved unless we have expressly approved it in writing.
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- We will furnish to you such site selection guidelines, consultation and on-site evaluation as we deem advisable as part of our evaluation of your request for site approval. We are not required to provide on-site evaluations. If we deem it necessary, however, we may conduct up to one (1) on-site visit at our cost. You must pay our travel, meals, and lodging expenses associated with any additional on-site visits we deem necessary, plus our then-current per diem fees for such services, currently $500.
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- We outsource certain aspects of site selection assistance to certain third-party suppliers at no additional cost to you. Their agents may serve as the local broker in markets where they have a presence, or they will assign you to a preferred partner. You may not use brokers or real estate agents outside of our required network without our prior written consent.
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- If you occupy the Site pursuant to a lease, we must approve the lease and the lease must contain a collateral assignment in the form attached as Exhibit 2 to your Franchise Agreement.
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Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the Site Selection Addendum is an integral part of the Franchise Agreement. Upon signing the Franchise Agreement, franchisees must also enter into the Site Selection Addendum, which outlines the obligations of both parties regarding the selection of an approved location for the bakery.
The Site Selection Addendum dictates that within 90 days of the Franchise Agreement's effective date, the franchisee must secure a site for the bakery, either through purchase or lease, subject to Nothing Bundt Cakes' approval. The franchisee is responsible for submitting a site review and any other required information for evaluation. Nothing Bundt Cakes has 30 days to approve or disapprove the proposed site at their discretion, with approval only valid if provided in writing.
Nothing Bundt Cakes may provide site selection guidelines, consultation, and on-site evaluations, though they are not obligated to conduct on-site visits. The brand also retains the right to review and approve the lease agreement, potentially requiring a 'Collateral Assignment of Lease' that allows Nothing Bundt Cakes to assume the lease under certain conditions. However, the FDD stipulates that Nothing Bundt Cakes' approval of a location does not guarantee the commercial value or financial success of the franchise at that location.