In Salt Lake City, franchise owners of Nothing Bundt Cakes, Brad and Fawn Berrett, are making headlines for their decision to remain closed on Sundays. The Berretts, along with fellow franchise owner Kelly Clayton, are members of The Church of Jesus Christ of Latter-day Saints and feel strongly about honoring the Sabbath day.
Roark Capital, the private equity firm that acquired Nothing Bundt Cakes, attempted to mandate that franchisees be open for at least five hours on Sundays starting in 2025. In response, Utah State Representative Ken Ivory introduced the Franchisee Protection Act, which was unanimously approved by legislators and signed into law by Governor Spencer Cox.
The law prohibits franchisors from requiring franchise owners to operate on a religious day if it conflicts with their beliefs, unless it was part of the original agreement. Violations can result in civil penalties, with fines increasing for repeat offenses.
The Berretts and Clayton, along with other franchise owners, stood their ground against the Sunday mandate, leading to this new legislation. The law sets a precedent in Utah and may serve as a model for other states, ensuring transparency and fairness for franchise owners.
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