Who is responsible for consequences arising from improper operation, maintenance, and upgrading of computer hardware and software at a Nothing Bundt Cakes bakery?

According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the franchisee is solely responsible for the consequences arising from the improper operation, maintenance, and upgrading of computer hardware and software. While Nothing Bundt Cakes requires franchisees to buy, use, and maintain the computer hardware and software according to their standards, the responsibility for the actual execution and any resulting issues falls on the franchisee. This includes the acquisition, operation, maintenance, and upgrading of the hardware and software.

This means that if a franchisee fails to properly operate, maintain, or upgrade their computer systems, leading to data breaches, system failures, or any other operational problems, they will be held responsible for all resulting consequences. It is also the franchisee's responsibility to ensure they have proper security applications and controls in place, such as anti-virus software and password protection.

Nothing Bundt Cakes also has the right to require franchisees to enter into separate agreements for required computer hardware and software, including POS systems and credit card processors, as well as maintenance and support contracts. They can also require franchisees to install a systems backup solution. The franchisee bears the expense of these agreements and solutions. This highlights the importance of a franchisee's understanding of technology and the need to budget for ongoing IT support and upgrades.

This allocation of responsibility is fairly standard in franchising, where franchisees are generally responsible for the day-to-day operations of their business, including technology management. However, the franchisor often sets the standards and requirements for the technology used to ensure consistency and data security across the brand.