exception

Are there any exceptions to the standard 10-year franchise term for Nothing Bundt Cakes?

Nothing_Bundt_Cakes Franchise · 2025 FDD

Answer from 2025 FDD Document

PROVISION SECTION IN SUMMARY
FRANCHISE
OR OTHER
AGREEMENT
any portion of the Gross Sales of your Bakery into a bank account
not approved of by us or which is not accessible to us via EFT; (j)
you offer any unauthorized or unapproved products or services in
connection with the operation of your Bakery; or (k) you order or
purchase supplies from unapproved suppliers.
Except as stated for above, we have the right to terminate the
Franchise Agreement after providing you a 30-day cure period if you
fail to perform or comply with any one or more of the terms or
conditions of the Franchise Agreement or any other agreement with
us or our affiliates, including compliance with the Operations
Manual.
h. "Cause" defined 14.1 and 14.2 of The Franchise Agreement will automatically terminate without
notice or an opportunity to cure if: (a) you make an assignment for
– non-curable Franchise the benefit of creditors, file a voluntary petition in bankruptcy, are
defaults Agreement and 8
of Development adjudicated bankrupt or insolvent, file or acquiesce in the filing of a
petition seeking reorganization or arrangement under any federal or
Rights Rider state bankruptcy or insolvency law, or consent to or acquiesce in the
appointment of a trustee or receiver for you or the Bakery; (b)
proceedings are commenced to have you adjudicated bankrupt or to
seek your reorganization under any state or federal bankruptcy or
insolvency law, and such proceedings are not dismissed within 60
days, or a trustee or receiver is appointed for you or the Bakery
without your consent, and the appointment is not vacated within 60
days; or (c) you purport to sell, transfer or otherwise dispose of your
interest in the Franchise Business without our written approval.
We have the right to terminate the Franchise Agreement with notice
without providing you an opportunity to cure if: (a) you take part in
criminal acts or misconduct;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 64–71)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the standard franchise agreement for Nothing Bundt Cakes does not appear to have exceptions to its term length. While the document details conditions under which the agreement can be terminated early by Nothing Bundt Cakes or the franchisee, it does not specify any circumstances that would alter the initial 10-year term. The franchise agreement can be terminated by Nothing Bundt Cakes with notice but without an opportunity to cure under certain conditions, such as the franchisee taking part in criminal acts or failing to maintain required insurance.

The Franchise Agreement will automatically terminate without notice or an opportunity to cure if the franchisee makes an assignment for the benefit of creditors, files a voluntary petition in bankruptcy, is adjudicated bankrupt or insolvent, files or acquiesces in the filing of a petition seeking reorganization, or consents to the appointment of a trustee or receiver.

Prospective franchisees should note that while the term length itself seems fixed, adherence to the franchise agreement and all operational standards is crucial to maintaining the franchise for the entire duration. Failure to comply with the agreement can lead to early termination, resulting in a loss of investment and business opportunity. It would be prudent for potential franchisees to discuss term-related stipulations and termination clauses with Nothing Bundt Cakes during their due diligence to fully understand their obligations and potential risks.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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