Is there a guaranteed minimum or maximum radius for a Nothing Bundt Cakes Territory?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
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. There are no restrictions on our or our Affiliate's right to operate and grant others the right to operate Approved Locations at Non-Traditional Sites. Upon renewal of your Franchise Agreement, we
reserve the right to modify and/or reduce the size of your Territory to be consistent with our then-current criteria for determining the size of a franchisee's territory.
You will not receive an exclusive territory. Your limited territorial rights will not be exclusive in terms of marketing rights, delivery, or clientele. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We have the right to open or license others the right to open a non-traditional site within the Territory, provided however, we will give you a right of first refusal to establish and operate a Bakery at any ROFR Site, which we define as any mall (indoor and outdoor) food courts, food halls, fairs, festivals, and locations or events designed for large gatherings. For this reason, your Territory is not deemed exclusive. (Section 4.7 of the Franchise Agreement).
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, there is no set minimum or maximum radius for a protected territory. The size and shape of the territory is determined by market area factors such as population density and drive times. The territory boundaries around an Approved Location will depend on these market factors. The radius may be measured in miles or blocks from the Approved Location.
However, if a franchisee operates in a ROFR (Right of First Refusal) Site, the territory may be limited to the physical footprint of that specific site. Nothing Bundt Cakes also retains the right to operate or license others to operate at Non-Traditional Sites within a franchisee's territory. Upon renewal of the Franchise Agreement, Nothing Bundt Cakes reserves the right to modify or reduce the size of the territory to align with their then-current criteria.
While franchisees receive a protected territory, it is not exclusive in terms of marketing rights, delivery, or clientele. Franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution. Nothing Bundt Cakes retains the right to open or license Non-Traditional Sites within the territory, offering the franchisee a right of first refusal at ROFR Sites like malls and food courts. Given these conditions, the territory is not considered exclusive.