Under what conditions does Nothing Bundt Cakes have the right to terminate the Development Rights Rider?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
possession of) a proposed site, we also will determine the Territory for that Bakery. Our then-current standards for sites and territories will apply. We have the right to terminate the Development Rights Rider if you do not satisfy your development obligations.
Failure to comply with the Development Schedule in Exhibit A to the Development Rights Rider, including closing Bakeries open during the term of the Development Rights Rider, will result in termination of the Development Right Rider. However, we will not include Bakeries in the Development Area which are being relocated pursuant to our standards and specifications in determining compliance with the Development Schedule. In the event that you fail to meet the Development Schedule, and the Development Rights Rider is terminated, you will retain your rights to any individual Bakeries for which you have (a) executed Franchise Agreements, and (b) made all appropriate payments to us.
Source: Item 12 — TERRITORY (FDD pages 52–58)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, Nothing Bundt Cakes has the right to terminate the Development Rights Rider if the franchisee fails to comply with the Development Schedule outlined in Exhibit A of the rider. This includes failing to open Bakeries according to the agreed-upon schedule during the term of the Development Rights Rider. However, Bakeries being relocated according to Nothing Bundt Cakes' standards are not considered when determining compliance with the Development Schedule.
Even if the Development Rights Rider is terminated due to failure to meet the Development Schedule, the franchisee retains rights to any individual Bakeries for which they have executed Franchise Agreements and made all appropriate payments to Nothing Bundt Cakes.
Nothing Bundt Cakes also reserves specific rights concerning the Development Area, and may engage in activities not expressly prohibited by the Development Rights Rider. If a franchisee does not satisfy their development obligations, Nothing Bundt Cakes has the right to terminate the Development Rights Rider.