What right does Nothing Bundt Cakes have regarding the lease for the Approved Location?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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.
4.2 Lease Approval
We have the right to review, evaluate, and approve your lease for the Approved Location (the "Lease") prior to execution. We will condition our approval of any proposed Lease upon, among other things, you and your landlord's execution of a "Collateral Assignment of Lease" in the form attached as Exhibit 2 to this Agreement, which (i) grants us the right, but not the obligation, to assume the Lease upon (a) your default on the Lease, or (b) termination, transfer or expiration of this Agreement, and (ii) authorizes and requires your landlord to disclose to us, upon our request, sales and other information you have furnished to the landlord. If your lease does not include the Collateral Assignment of Lease in the form set forth in Exhibit 2, or if there are other material deviations in your lease that require our review, as we determine in our sole discretion, we reserve the right to charge you the reasonable attorneys' fees we incur in such review. You must deliver an executed copy of the Lease and the Collateral Assignment of Lease to us within fifteen (15) days of execution of the Lease. If you are approved to go outside our approved master real estate broker network, we reserve the right to require you to pay us or our designated supplier
a fee of Three Thousand Dollars ($3,000)
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, Nothing Bundt Cakes has specific rights regarding the lease for the Approved Location. Before a franchisee signs a lease or sublease for a bakery site, they must send it to Nothing Bundt Cakes for written acceptance, which Nothing Bundt Cakes will not unreasonably withhold. The franchisee is prohibited from signing any lease or sublease without Nothing Bundt Cakes' written consent. While Nothing Bundt Cakes may offer guidance during the leasing process, they are not obligated to do so and will not negotiate the lease or provide legal advice.
Nothing Bundt Cakes retains the right to review, evaluate, and approve the lease for the Approved Location before it is executed. Their approval may depend on the franchisee and landlord executing a "Collateral Assignment of Lease." This agreement grants Nothing Bundt Cakes the right, but not the obligation, to assume the lease if the franchisee defaults or if the Franchise Agreement terminates or expires. It also allows Nothing Bundt Cakes to request sales and other information the franchisee provides to the landlord.
If the lease does not include the Collateral Assignment of Lease in the required form, or if there are other significant deviations that require review, Nothing Bundt Cakes reserves the right to charge the franchisee for reasonable attorney's fees incurred during the review. The franchisee must provide Nothing Bundt Cakes with an executed copy of the lease and the Collateral Assignment of Lease within 15 days of the lease execution. These stipulations ensure Nothing Bundt Cakes maintains some control over the location and can protect its interests should the franchisee's business falter.