Is Nothing Bundt Cakes' approval required for any transfer of the Bakery?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Net Revenues (see Note 3) | |||
| Paid Media Fund (the "Media Fund") | Combined contributions made by you for the Media Fund and the Production Fund will be 5% of your weekly Net Revenues (see Note 3) | Due on Tuesday of each week on Net Revenues during previous week ending Sunday | See Item 11 for a detailed discussion of the Media Fund. Contributions to the Media Fund (the "Media Fund Fee") must be paid by EFT. |
| Local Cooperative Fund | If we designate a Cooperative Fund for your Territory, you must participate in the Cooperative Fund, and your contributions will be credited towards your Production Fund contribution requirements | Must be spent monthly | If we designate a local cooperative fund ("Cooperative") for your Territory, you must participate and your contributions to the Cooperative will be credited towards your required Production Fund contribution. |
| Training for Additional or Replacement Operators | $2,500 per person, plus expenses, but could increase if our costs increase | Beginning of training | We provide initial training for two people at no additional cost (see Item 11). You must pay this amount for any additional or replacement Operator that you hire. You must also pay all expenses your trainee incurs, including travel, lodging, meals and applicable wages. You must at all times have a full-time Operator certified by us to operate the Bakery. |
| Additional Training or Assistance during Franchise Term | Our then-current fee, currently $300 per trainer per day plus expenses for training at our location; $500 per day plus expenses for training in your Territory; but could increase if our costs increase | When training or assistance begins | A day is 8 hours of work at the location. Travel time is billed separately on an hourly basis. |
| Renewal | 50% of our then current Initial Franchise Fee | Upon request for renewal of your franchise | |
| Transfer in the event of a sale of the Bakery | $10,000 transfer fee, plus $5,000 for transfer opening advertising campaign, | Upon request for transfer | You must obtain our approval in connection with any transfer of the Bakery. |
| Type of Fee | Amount | Due Date | Remarks |
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, you must obtain their approval to transfer ownership of your Bakery. Specifically, this applies to a sale of the Bakery itself or a transfer of the ownership interests of the franchisee entity (if you operate as a corporation, LLC, or partnership). This requirement is standard practice in franchising, as franchisors want to ensure that any new owner meets their standards and is capable of running the business successfully.
In the event of a sale of the Bakery, Nothing Bundt Cakes charges a $10,000 transfer fee, plus $5,000 for a transfer opening advertising campaign. In the event of a transfer of the ownership interests of the franchisee, Nothing Bundt Cakes charges a $5,000 transfer fee. In both scenarios, the franchisee is responsible for any broker fees or commissions Nothing Bundt Cakes incurs. These fees compensate Nothing Bundt Cakes for their time and expenses in reviewing and approving the transfer, as well as for updating their records and providing training to the new owner, if necessary.
Prospective franchisees should consider these transfer requirements and fees when evaluating the Nothing Bundt Cakes franchise opportunity. It is important to understand the process for transferring ownership and the associated costs, as this can impact the value of the franchise and your ability to exit the business in the future. It would be prudent to discuss the transfer process in detail with the franchisor and current franchisees to gain a better understanding of what to expect.