What is the Nothing Bundt Cakes franchisee's obligation regarding paying the transfer fee?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
on Net Revenues during previous week ending Sunday | See Item 11 for a detailed discussion of the Production Fund. Contributions to the Production Fund (the "Production Fund Fee") must be paid by EFT. |
| 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% |
Source: Item 6 — OTHER FEES (FDD pages 23–30)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, a franchisee must obtain approval from Nothing Bundt Cakes in connection with any transfer of the Bakery. If a franchisee is selling the bakery, they must pay a $10,000 transfer fee, plus $5,000 for a transfer opening advertising campaign. These fees are due upon 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. In this case, the transfer fee is $5,000, plus any broker fees or commissions Nothing Bundt Cakes incurs. This fee could increase if Nothing Bundt Cakes' costs increase, and it is due upon request for the transfer.
These transfer fees are common in franchising and are intended to compensate Nothing Bundt Cakes for their time and expenses associated with reviewing and approving the transfer, as well as for the costs of training the new franchisee and ensuring a smooth transition. The advertising fee ensures that the transfer of ownership is properly communicated to customers in the area.