Who is a third-party beneficiary of the Nothing Bundt Cakes Confidentiality Agreement?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
THE STATE OF WISCONSIN**
For franchises and franchisees/developers subject to the Wisconsin Fair Dealership Law, the following information supersedes or supplements, as the case may be, the corresponding disclosures in the main body of the text of the NBC Franchisor LLC Wisconsin Franchise Disclosure Document.
Item 17.
For Wisconsin franchisee/developers, ch. 135, Stats., the Wisconsin Fair Dealership Law, supersedes any provisions of the Franchise Agreement or a related contract between Franchisor and franchisee/developer inconsistent with the Law.
EXHIBIT I TO THE DISCLOSURE DOCUMENT
CONFIDENTIALITY AND NONDISCLOSURE NBC FRANCHISOR LLC
Given the confidential nature of the information to be provided to persons interested in purchasing a Nothing Bundt Cakes franchise ("Prospective Franchisee") during their evaluation of the Nothing Bundt Cakes franchise opportunity ("NBF Franchises"), NBC Franchisor LLC (the "Franchisor") requires that should the Prospective Franchisee not purchase a NBF Franchise, the Prospective Franchisee may not use any of the information provided by Franchisor during the Prospective Franchisee's evaluation of Franchisor's business, for any purpose whatsoever.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, NBC Franchisor LLC (referred to as "Franchisor") requires prospective franchisees evaluating a Nothing Bundt Cakes franchise to sign a Confidentiality & Nondisclosure Agreement. This agreement ensures that if a prospective franchisee does not purchase a Nothing Bundt Cakes franchise, they cannot use any information provided by the Franchisor during their evaluation for any purpose.
The purpose of this agreement is to protect the confidential information, processes, methods, techniques, procedures, and knowledge related to the development and operation of a Nothing Bundt Cakes bakery. This includes, but is not limited to, information in the Operations Manual, sales and marketing techniques, personnel training programs, lists of prospective franchisees, supplier networks, financial information, proprietary recipes, and guest information.
The Franchisee and the Company are beneficiaries of the Confidentiality Agreement. The agreement emphasizes its importance to both parties, stating that any claims a prospective franchisee may have against either the Franchisee or the Company do not justify violating the Confidentiality Agreement. This suggests that both the existing franchisees and the Franchisor (the Company) benefit from the protection of confidential information, and can enforce the agreement.