- Nothing Bundt Cakes notified Utah franchisees this week that they must open on Sundays or risk losing their bakeries.
- Rep. Ken Ivory introduced a bill that would prohibit franchisors from changing their policy to require religious day operations.
- A Nothing Bundt Cakes owner said he invested savings into a franchise because he had the option to stay closed on Sunday.
Time is running out for several Utah businesses that have objected to a corporate policy change requiring them to open on Sundays contrary to their original contracts — and their religious beliefs.
This week, multiple Nothing Bundt Cakes owners in Utah were notified by email that they have 30 days to comply with the new rule or risk losing their bakeries.
“They have an economic gun to their head,” state Rep. Ken Ivory, R-West Jordan, told the Deseret News on Friday.
On Thursday, Ivory unveiled a bill that — if fast tracked by the Utah Legislature — could allow Nothing Bundt Cakes owners to keep their stores closed on a day of religious observance. But whether state lawmakers can mandate that change is up for debate.
What would the Bundt Cakes bill do?
HB441, Franchisee Protection Act, would prohibit a franchisor, like Nothing Bundt Cakes, from requiring a franchisee to open on a day of worship if it conflicts with a sincerely held religious belief, unless the original franchise agreement clearly includes the requirement.
The legislation would allow for franchisors to amend or renew a franchise agreement to include “a religious day operation requirement” but it would prohibit franchisors from refusing to renew agreements based on a franchisee’s decision to not comply.
If a franchisor violates the statute then they would be liable to pay damages to the franchisee and to pay civil penalties of up to $10,000 for the first violation, $25,000 for a second violation and $50,000 for a subsequent violation.
“There’s something about that opportunity and ability and sanctity of recognizing worship that is very central to American liberty,” Ivory said.
But with cease and desist orders requiring compliance from Nothing Bundt Cakes owners before March 6 — the day before the end of the legislative session — lawmakers are running out of time.
Ivory’s bill includes an uncommon provision that would allow the law to go into effect as soon as it is signed by the governor if it is approved by two-thirds of representatives and senators.
“There’s an urgency to this bill,” Ivory said. “If they don’t conform they will revoke their franchise in a matter of weeks.”
Ivory said the problem was brought to his attention during a town hall before the 2025 legislative session by constituents who were franchisees with Nothing Bundt Cakes and at least two other chains.
Ivory then brought the issue to Sen. Lincoln Fillmore, R-South Jordan, who owns a Nothing Bundt Cakes franchise in Taylorsville. Fillmore answered Ivory’s questions but chose not to involve himself in the bill, Ivory said.
What are Bundt Cakes bakers saying?
For Kelly Clayton, the owner of Nothing Bundt Cakes locations in St. George and Spanish Fork, the passage of Ivory’s bill could mean the difference between retirement and starting over.
In 2018, Clayton and his wife sold their home and took a loan out on his 401(k) to purchase their St. George Nothing Bundt Cakes location with the explicit understanding in their contract that opening on Sundays would be optional.
“We gave everything, financially and physically, emotionally and every other way, to this brand, to purchasing this bakery,” Clayton said. “We never would have signed on the dotted line to purchase the franchise if we had to be open on Sundays.”
The Claytons consider Sundays “the Lord’s day,” and try to “keep it holy” by worshiping God and spending time with family, Clayton said.
One of the reasons Clayton’s family was attracted to the franchise, beside the cakes, was that Nothing Bundt Cakes insisted that their company culture valued faith and family, Clayton said.
Under the new franchise agreement, Clayton opened a second franchise in Spanish Fork under the belief there would be plenty of exceptions, “especially for the Utah bakeries.”
However, when the policy went into effect earlier this year, franchisees learned that no exceptions would be given until franchises had been open on Sundays for at least six months and only if the franchises met certain sales metrics.
According to media reports, all requests for exceptions have been denied so far, even with complaints from franchisees that they lose money on Sundays because they have fewer customers.
Is the Bundt Cakes bill constitutional?
Before the new policy went into effect, Clayton said he joined a group of Utah franchisees in writing a letter to company leadership requesting an exception.
Clayton said he has committed to keep his locations open longer during the week to meet the new 62-hour requirement but he has refused to comply with the new five-hour minimum on Sundays.
In a statement responding to Ivory’s bill, Nothing Bundt Cakes said that customers have given “overwhelmingly positive” feedback on the requirement for franchises to be open 7-days a week.
“We communicated the importance of being open all week long to our entire franchise system over a year ago,” the statement read. “This provided them with time to prepare and is consistent with our franchise agreements. Like all franchised businesses in Utah that operate seven days a week, we will watch this proposed legislation closely.”
Whether state lawmakers can come in and dictate how Nothing Bundt Cakes manages its contracts is under dispute.
Business law professors, speaking to CNN about Ivory’s bill, said that a legislative remedy could come into conflict with the contracts clause of the Constitution, which prevents states from passing laws that alter existing contracts.
This is well within the Legislature’s purview, Ivory argues, because the franchise model of business is actually “a creation of state law.”
“So clarifying the rights and responsibilities is a creature of state law,” Ivory said. “We didn’t think we would need to, but apparently we do.”