Under what circumstances must you pay Nothing Bundt Cakes' attorneys' fees?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
We will condition our approval of any proposed Lease upon, among other things, you and your landlord's execution of a "Collateral Assignment of Lease" in the form attached as Exhibit 2 to this Agreement, which (i) grants us the right, but not the obligation, to assume the Lease upon (a) your default on the Lease, or (b) termination, transfer or expiration of this Agreement, and (ii) authorizes and requires your landlord to disclose to us, upon our request, sales and other information you have furnished to the landlord. If your lease does not include the Collateral Assignment of Lease in the form set forth in Exhibit 2, or if there are other material deviations in your lease that require our review, as we determine in our sole discretion, we reserve the right to charge you the reasonable attorneys' fees we incur in such review.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 FDD, a Nothing Bundt Cakes franchisee may be required to pay the franchisor's attorneys' fees under specific circumstances related to lease agreements. If the franchisee's lease for the Approved Location does not include the Collateral Assignment of Lease in the form set forth in Exhibit 2, or if there are other material deviations in the lease that require Nothing Bundt Cakes' review, the franchisee may be charged the reasonable attorneys' fees that Nothing Bundt Cakes incurs in such review.
This means that if a franchisee presents a lease agreement that deviates significantly from the standard Collateral Assignment of Lease form provided by Nothing Bundt Cakes, the franchisor has the right to have its legal team review the document. The franchisee will then be responsible for covering the costs of this legal review. This provision ensures that Nothing Bundt Cakes maintains control over lease terms and protects its interests in the event of franchisee default or termination of the franchise agreement.
For a prospective Nothing Bundt Cakes franchisee, this highlights the importance of adhering to the franchisor's standard lease terms and using the provided Collateral Assignment of Lease form. Deviating from these standards can lead to unexpected legal expenses. It is advisable for franchisees to carefully review lease agreements with their own legal counsel to ensure compliance and avoid incurring additional fees from Nothing Bundt Cakes' legal review.