Is Nothing Bundt Cakes responsible for directing or controlling the conduct of a franchisee's employees?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
Bakery personnel that you are their employer and that we, as the franchisor of Nothing Bundt Cakes, and our affiliates are not their employer or joint employer and do not engage in any employer-type activities for which only franchisees are responsible, such as employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions. You further acknowledge that we have no responsibility to ensure that the Bakery is developed and operated in compliance with all applicable laws, ordinances, and regulations, and that we shall have no liability in the event the development or operation of the Bakery violates any law, ordinance or regulation.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the franchisee is considered the employer of the bakery personnel, and Nothing Bundt Cakes is not. Nothing Bundt Cakes and its affiliates are not considered the employer or joint employer of the franchisee's employees. Therefore, Nothing Bundt Cakes does not engage in employer-type activities. These activities include employee selection, promotion, termination, determining hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions.
This means that as a Nothing Bundt Cakes franchisee, you are solely responsible for all employment-related decisions and actions within your bakery. You also acknowledge that Nothing Bundt Cakes has no responsibility to ensure the Bakery is developed and operated in compliance with all applicable laws, ordinances, and regulations.
This arrangement is typical in franchising, where franchisees are independent business owners responsible for their own staff and compliance. However, it's crucial for prospective franchisees to understand the full scope of their responsibilities as employers and to ensure they are prepared to handle all aspects of personnel management and legal compliance. Franchisees should consult with legal and HR professionals to ensure they are meeting all obligations as employers.