What is the condition regarding the transfer fee when transferring ownership of a Nothing Bundt Cakes franchise?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
each of you hereby agree, in consideration of benefits received and to be received by each of you, jointly and severally, and for yourselves, your heirs, legal representatives and assigns, to be firmly bound by all of the terms, provisions and conditions of the foregoing Franchise Agreement, and any other agreement between Franchisee and Franchisor and/or its affiliates, and do hereby unconditionally guarantee the full and timely performance by Franchisee of each and every obligation of Franchisee under the aforesaid Franchise Agreement or other agreement between Franchisor and Franchisee, including, without limitation, any indebtedness to Franchisor or its affiliates of Franchisee arising under or by virtue of the aforesaid Franchise Agreement and that you (jointly and individually) will not permit or cause any change in the percentage of Franchisee owned, directly or indirectly, by any person, without first obtaining the written consent of Franchisor prior to said proposed transfer, which consent must not be unreasonably withheld, and without first paying or causing to be paid to Franchisor the transfer fee provided for in said Franchise Agreement, if applicable, and without otherwise complying with the transfer provisions of the foregoing Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, a franchisee is required to pay a transfer fee to the franchisor if they want to transfer ownership. Specifically, the franchisee (or the individuals guaranteeing the franchise agreement) must not permit any change in the ownership percentage of the Nothing Bundt Cakes franchise without first obtaining written consent from NBC Franchisor LLC. This consent cannot be unreasonably withheld.
Furthermore, before any proposed transfer of ownership can occur, the franchisee must pay the transfer fee stipulated in the franchise agreement to Nothing Bundt Cakes. Compliance with all other transfer provisions outlined in the franchise agreement is also mandatory.
In summary, a Nothing Bundt Cakes franchisee needs to get approval from the franchisor before changing the ownership and must pay a transfer fee, as well as meet all other transfer requirements in the franchise agreement.