Under what circumstances can Nothing Bundt Cakes request additional documentation or agreements from the franchisee?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
akes® Bakeries that you (or your "Approved Affiliates," a term defined in Section 3 below) are permitted to develop and operate at ROFR Sites do not count toward your compliance with the Schedule.
YOU ACKNOWLEDGE AND AGREE THAT TIME IS OF THE ESSENCE UNDER THIS RIDER, AND YOUR RIGHTS UNDER THIS RIDER ARE SUBJECT TO TERMINATION, AS PROVIDED IN THIS RIDER, IF YOU DO NOT COMPLY STRICTLY WITH THE DEVELOPMENT OBLIGATIONS PROVIDED IN THE SCHEDULE. WE MAY ENFORCE THIS RIDER STRICTLY.
3. Development Obligations.
(a) Approved Affiliates. To maintain your rights under this Rider, you (and/or Approved Affiliates) must, by the deadlines specified in the Schedule, sign franchise agreements and leases for, and then construct, develop, and have open and operating within the Development Area, the agreedupon minimum number of Nothing Bundt Cakes® Bakeries. If your owners establish a new legal entity to operate one or more of the Nothing Bundt Cakes® Bakeries to be developed pursuant to this Rider and that new legal entity's ownership is completely identical to your ownership, that legal entity automatically will be considered an "Approved Affiliate" without further action. However, if the new legal entity's ownership is not completely identical to your ownership, you first must seek our approval for that new entity to develop and operate the proposed Bakery as an Approved Affiliate. We may refuse any such request if you and/or your owners do not (a) own and control at least eighty percent (80%) of the new entity's ownership interests and (b) have the authority to exercise voting and management control of the Bakery proposed to be owned by the new entity.
- (b) Form of Franchise Agreement. You (and/or your Approved Affiliates) will operate each Nothing Bundt Cakes® Bakery under a separate franchise agreement with us. The franchise agreement (and related documents, including Guaranty and Assumption of Obligations) that you and your owners (or your Approved Affiliate and its owners) must sign for each Bakery developed pursuant to this Rider will be our then-current form of franchise agreement (and related documents, including Guaranty and Assumption of Obligations), any or all terms of which may differ substantially and materially from any or all terms contained in the First Franchise Agreement, provided, however, that the initial franchise fee will be Forty-Five Thousand Dollars ($45,000) for the second and each subsequent Nothing Bundt Cakes® Bakery to be developed pursuant to this Rider.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, to maintain rights under the Development Rider, franchisees must sign franchise agreements and leases for, and then construct, develop, and have open and operating within the Development Area, the agreed-upon minimum number of Nothing Bundt Cakes Bakeries. These agreements and documents will be the then-current form of the franchise agreement. The initial franchise fee will be Forty-Five Thousand Dollars ($45,000) for the second and each subsequent Nothing Bundt Cakes® Bakery to be developed pursuant to this Rider.
If the franchisee establishes a new legal entity to operate one or more of the Nothing Bundt Cakes bakeries to be developed, and that new legal entity's ownership is not completely identical to the franchisee's ownership, the franchisee must seek approval from Nothing Bundt Cakes for that new entity to develop and operate the proposed bakery as an Approved Affiliate. Nothing Bundt Cakes may refuse this request if the franchisee and/or their owners do not own and control at least eighty percent (80%) of the new entity's ownership interests and have the authority to exercise voting and management control of the bakery proposed to be owned by the new entity.
Nothing Bundt Cakes is not obligated to execute any of the franchise agreements if the franchisee has not complied with each and every condition in the Rider or does not meet their then-current requirements. The franchisee must send a separate application for each Nothing Bundt Cakes bakery that they wish to develop in the Development Area.