Does the Nothing Bundt Cakes Territory exclude Non-Traditional Sites?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
ou comply with our relocation criteria and find a new location approved by us within 30 days of the fire or casualty. If you relocate your Bakery without our prior written consent, we shall have the right immediately to terminate the Franchise Agreement.
We will grant you a protected area within which we will not open another Bakery under the Marks and System (the "Territory"), as identified in Data Sheet to the Franchise Agreement. The Territory's boundary around your Approved Location will depend on your market area, including population density, drive times, and similar factors. There is no set minimum or maximum radius. We do not guarantee a certain population density in your Territory. Depending on the location of your Approved Location and your specific market and circumstances, the radius will be measured in terms of miles or number of blocks from the Approved Location. However, if you operate in a ROFR Site (based upon our authorizing you to do so), your Territory might be limited to the physical footprint of the specific site/premises. Otherwise, your Territory will exclude all Non-Traditional Sites (as defined below) physically located within the Territory.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to Nothing Bundt Cakes's 2025 Franchise Disclosure Document, a franchisee's territory typically excludes Non-Traditional Sites. The FDD specifies that unless a franchisee operates in a Right of First Refusal (ROFR) Site, the territory will exclude all Non-Traditional Sites physically located within it. Nothing Bundt Cakes retains the right to operate or allow others to operate locations at Non-Traditional Sites, meaning a franchisee's protected area does not extend to these locations.
Non-Traditional Sites are defined broadly and include locations such as airports, train stations, supermarkets, convenience stores, office buildings, military bases, hospitals, college campuses, and other retail facilities not solely dedicated to selling approved products. This exclusion means that Nothing Bundt Cakes can establish other outlets in these locations within a franchisee's territory, potentially creating competition. However, Nothing Bundt Cakes will give a franchisee a right of first refusal to establish and operate a Bakery at any ROFR Site, which includes mall (indoor and outdoor) food courts, food halls, fairs, festivals, and locations or events designed for large gatherings.
This arrangement has significant implications for a prospective Nothing Bundt Cakes franchisee. While a franchisee is granted a protected area, this protection is limited and does not extend to Non-Traditional Sites. This lack of exclusivity could impact the franchisee's potential customer base and revenue. The right of first refusal for ROFR Sites offers some opportunity to expand within the territory, but it is contingent on meeting certain criteria and executing Nothing Bundt Cakes's then-current franchise agreement, which may have materially different terms. Franchisees should carefully consider the potential impact of Non-Traditional Sites on their business and the conditions associated with the right of first refusal.