Gov. Cox signs Utah law letting cake shops stay closed on Sunday without penalty

Yahoo

18-03-2025

Utah Gov. Spencer Cox signed a new bill into law on Monday that will allow a group of nearly two dozen Nothing Bundt Cakes stores in Utah to stay closed on Sundays without facing legal repercussions from their corporate franchisor.
The stores could have faced a difficult alternative if the Legislature had failed to pass HB441, Franchisee Protection Act, which will go into effect immediately after receiving supermajority support from lawmakers.
Nothing Bundt Cakes owners were notified midway through the 2025 legislative session that they had until March 7 to comply with a new rule mandating that they open for at least five hours on Sundays or risk losing their bakeries.
The bill received a final unanimous vote on March 7, with just hours left in the session.
'We are so grateful for the passing of the Franchisee Protection Act,' said Kelly Clayton, the owner of Nothing Bundt Cakes locations in St. George and Spanish Fork. 'This bill not only protects us but all franchisees from unfair practices by big corporations. Most of all we owe our thanks to the Lord for helping us to maintain our right to rest, be with family and worship him on his Sabbath day.'
HB441 was introduced after multiple business owners approached Rep. Ken Ivory, R-West Jordan, about a recent policy change requiring them to open on Sundays contrary to their original contract — and their religious beliefs.
Ivory 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.
Ivory described the situation facing franchisees as having an 'an economic gun to their head' because many Nothing Bundt Cakes owners, including Clayton, had invested their life savings into opening up shops with the understanding that they could stay closed on their day of worship.
Utah's new law prohibits 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.
Franchisors will be allowed to renew a franchise agreement to include 'a religious day operation requirement' but they cannot refuse to renew agreements based on a franchisee's decision to not accept the religious day operation requirement.
If a franchisor violates the statute, then they will 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 told the Deseret News.
While there was some debate about whether the bill infringed on economic freedom, lawmakers appeared to arrive at a consensus that because franchise agreements are a creation of state code they can be amended to balance the relationship between franchisor and franchisee.
Many Nothing Bundt Cakes owners reported that the reason they were attracted to the franchise in the first place was that the organization insisted that their company culture valued faith and family.
But after the company was sold to a private equity firm, franchisees were notified that at the beginning of 2025 all locations must be open for 62 hours a week with a five-hour minimum on Sundays.
Alyssa Morrison, who is the operator at the American Fork Nothing Bundt Cakes store, told the Deseret News that the new law will enable her family to continue balancing good customer service with their personal religious values.
'This bill begins to level the playing field so that franchisors are prevented from putting small business owner's lives and life savings at risk by making promises about their 'family culture' to entice their investments, and years later change the agreement to force franchisees to be away from their families and open their stores on their originally agreed upon day of worship,' Morrison said.
Nothing Bundt Cakes' chief legal officer messaged some franchisees on March 13 stating that the company would follow the state's new law, Clayton said.
In a statement to the Deseret News, Nothing Bundt Cakes reaffirmed that the company is 'committed to following all federal, state and local laws in the communities we serve.'
'Guests can check with their local bakeries for hours of operation, and we look forward to being part of Utahns' celebrations and everyday moments for years to come,' the statement said.