Under what circumstances will the indemnification clause NOT apply to Nothing Bundt Cakes?

According to the 2025 FDD, the Franchisee Disclosure Acknowledgment Statement, which includes the indemnification clause, will not be completed by the franchisee, and therefore will not apply, under specific conditions. These conditions are if the offer or sale of the Nothing Bundt Cakes franchise is subject to state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.

Additionally, the Franchisee Disclosure Acknowledgment Statement will not be completed or apply if the Nothing Bundt Cakes franchise is to be operated in, or if the franchisee is a resident of, California or Maryland. This means that franchisees in these states are not required to sign the acknowledgement, and the indemnification clause within it would not be enforceable.

This exemption is significant because indemnification clauses typically require the franchisee to protect the franchisor from losses, damages, or liabilities arising from the franchisee's operation of the business. Franchisees in other states will be subject to the terms of the indemnification clause.