What is the Nothing Bundt Cakes franchisee's obligation regarding obtaining approval for a transfer?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 | |------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | plus any broker fees or commissions we incur. | | | | Transfer of the ownership interests of franchisee | $5,000, plus any broker fees or commissions we incur;
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, a franchisee must obtain approval from Nothing Bundt Cakes in order to transfer ownership of their bakery. If a franchisee seeks to sell their bakery, they will incur a $10,000 transfer fee, plus an additional $5,000 for a transfer opening advertising campaign. These fees are due upon the request for the transfer.
If the franchisee is a corporation, limited liability company, or partnership, they must also obtain approval from Nothing Bundt Cakes for any transfer of ownership interests. This transfer incurs a $5,000 fee, plus any broker fees or commissions Nothing Bundt Cakes incurs. This fee could increase if Nothing Bundt Cakes' costs increase.
These stipulations are fairly standard in the franchise industry, as franchisors typically want to maintain control over who joins their system. The transfer fees compensate Nothing Bundt Cakes for their time and expenses in reviewing and approving the transfer, as well as ensuring the new owner is properly trained and equipped to operate the bakery. Prospective franchisees should carefully consider these transfer requirements and fees, as they can significantly impact the value and liquidity of their franchise investment.