Does Nothing Bundt Cakes use a Development Rights Rider (Exhibit C)?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our single unit offering, we grant qualified individuals the right to own and operate multiple Bakeries in a designated area through an "Development Rights Rider" to the Franchise Agreement. A copy of our Development Rights Rider is attached as Exhibit C to this disclosure document. You must sign our then-current form of Franchise Agreement for each Bakery developed under the Development Rights Rider, the terms of which may be materially different than the terms of the franchise agreement attached to this disclosure document as Exhibit B.
Source: Item 22 — CONTRACTS (FDD page 93)
What This Means (2025 FDD)
According to the 2025 FDD, Nothing Bundt Cakes offers qualified individuals the opportunity to own and operate multiple bakeries in a designated area through a Development Rights Rider. This rider is included as Exhibit C in the Franchise Disclosure Document.
Prospective franchisees should note that the terms of the Franchise Agreement for each bakery developed under the Development Rights Rider may differ materially from the terms of the standard franchise agreement, which is attached as Exhibit B to the FDD. This means that franchisees expanding under a Development Rights Rider may encounter different obligations, fees, or operational requirements compared to their initial franchise agreement.
Under the Development Rights Rider, Nothing Bundt Cakes grants the franchisee the exclusive right to develop a specified number of bakeries within a defined geographic area, according to a mandatory development schedule outlined in Exhibit A of the rider. Time is of the essence, and the franchisee's rights are subject to termination if they fail to comply strictly with the development obligations. Nothing Bundt Cakes may enforce the rider strictly. Franchisees must pay Nothing Bundt Cakes a $45,000 initial franchise fee for the first franchise agreement, plus deposits equaling 50% of the $45,000 initial franchise fee for each additional bakery they commit to develop under the rider. These fees are non-refundable.
To maintain rights under the Development Rights Rider, franchisees must sign franchise agreements and leases, and then construct, develop, and operate the agreed-upon minimum number of Nothing Bundt Cakes bakeries within the Development Area by the deadlines specified in the Schedule. Each bakery must operate continuously in full compliance with its franchise agreement. The franchisee is responsible for locating, evaluating, and selecting the site for each bakery, and Nothing Bundt Cakes must approve each site and lease agreement. Nothing Bundt Cakes may delay development or opening of additional bakeries if they believe the franchisee is not prepared to operate them in compliance with their standards.