Under what conditions may Nothing Bundt Cakes prohibit a franchisee from participating in the E-Commerce Program?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
We may prohibit a franchisee from participating in the E-Commerce Program if the franchisee is not compliant with the terms of the E-Commerce Program, its franchise agreement, the Operations Manual, or any other agreement with us or our affiliates and subsidiaries. We may change the user terms, approved e-commerce platforms, our vendors, and methods and times for payment under the E-Commerce Program at our discretion. If a franchisee refuses or fails to fulfill e-commerce orders, fails to offer delivery, fails to deliver goods or services meeting our standards and specifications, or is otherwise not in material compliance with its obligations under its franchise agreement, we may allow a Bakery outside of the franchisee's territory to fulfill the orders without any compensation, reimburse the Guest, provide gift certificates, or otherwise remedy the situation, and the franchisee will be responsible for our costs in doing so.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to the 2025 FDD, Nothing Bundt Cakes may prohibit a franchisee from participating in the E-Commerce Program if the franchisee fails to comply with certain requirements. These requirements include compliance with the terms of the E-Commerce Program itself, the franchise agreement, the Operations Manual, or any other agreement with Nothing Bundt Cakes or its affiliates and subsidiaries. This means that a franchisee must adhere to all guidelines and stipulations set forth in these documents to maintain their eligibility in the E-Commerce Program.
If a Nothing Bundt Cakes franchisee refuses or fails to fulfill e-commerce orders, fails to offer delivery services, or fails to deliver goods or services that meet the standards and specifications set by Nothing Bundt Cakes, the franchisee may be barred from participating in the E-Commerce Program. Additionally, if the franchisee is not in material compliance with their obligations under the franchise agreement, Nothing Bundt Cakes has the right to allow a bakery outside of the franchisee's territory to fulfill the orders without providing any compensation to the non-compliant franchisee. In such cases, Nothing Bundt Cakes may also reimburse the guest, provide gift certificates, or otherwise remedy the situation, with the non-compliant franchisee being responsible for covering all associated costs incurred by Nothing Bundt Cakes.
This policy ensures that all Nothing Bundt Cakes locations participating in the E-Commerce Program maintain a consistent level of service and quality. It also protects the brand's reputation by allowing Nothing Bundt Cakes to take corrective action when a franchisee fails to meet the required standards. Franchisees should be aware of these conditions and ensure they fully understand and comply with all relevant agreements and operational guidelines to avoid being prohibited from participating in the E-Commerce Program.