What standards must a proposed transferee meet to be approved as a Nothing Bundt Cakes franchisee?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
. A copy of any agreements relating to the proposed transfer must accompany the notice. After reviewing the notice, we will decide whether to grant our consent, which will not be unreasonably withheld. We will condition our approval of the transfer upon the fulfillment of the following conditions, and the failure to comply with any of these conditions may result in our disapproval of the transfer at any time:
(a) The proposed transferee must follow the same application procedures as a new franchisee and must: (i) meet and satisfy our then-current educational, managerial and business standards; (ii) possess a good moral character, business reputation and credit rating; (iii) have the aptitude and ability to conduct the business to be transferred; and (iv) have adequate financial resources and capital to meet the performance obligations under this Agreement; however, the transferee cannot be in the same business as us as either a licensor, independent operator or licensee of any other bakery or chain of bakeries which is similar in nature or in competition with us, except that the transferee may be our existing franchisee.
- (b) We have not exercised the right of first refusal pursuant to Section 17.7 hereof.
(c) All of your accrued monetary obligations towards us and our affiliates and system suppliers have been paid in full.
(d) You have cured all existing defaults under this Agreement, or any other agreement between you and us, our affiliates, and our approved and designated suppliers and vendors, within the period permitted for cure and have substantially complied with all such agreements during their respective terms.
(e) You agree to comply with your post-termination obligations in this Agreement, including but not limited to your confidentiality, non-compete, and indemnity obligations contained in this Agreement.
(f) You must pay us a transfer fee of (i) Ten Thousand Dollars ($10,000) in the event of a transfer under Section 17.3(i); or (ii) Five Thousand Dollars ($5,000) in the event of a transfer under Sections 17.3(ii), (iii) and (iv). This amount is paid to us in order to cover our administrative and other expenses incurred in connection with the transfer, plus any reasonable brokerage fees o
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, a proposed transferee must adhere to specific standards to gain approval as a franchisee. The transferee must follow the same application procedures as a new franchisee. This includes meeting the brand's current educational, managerial, and business standards.
Additionally, the proposed transferee must demonstrate good moral character, business reputation, and a solid credit rating. They need to possess the aptitude and ability to successfully manage the Nothing Bundt Cakes business being transferred. Adequate financial resources and capital are also essential to meet the performance obligations outlined in the franchise agreement. However, the transferee cannot be a licensor, independent operator, or licensee of a competing bakery, unless they are an existing Nothing Bundt Cakes franchisee.
Furthermore, the existing franchisee must meet certain obligations for the transfer to proceed. All accrued monetary obligations to Nothing Bundt Cakes, its affiliates, and system suppliers must be paid in full. Any existing defaults under the franchise agreement or any other agreements with the franchisor, its affiliates, or approved suppliers must be cured within the permitted timeframe. The franchisee must also substantially comply with all such agreements during their terms and agree to comply with post-termination obligations, including confidentiality, non-compete, and indemnity obligations.
Finally, the transferee is required to complete the initial training program to the satisfaction of Nothing Bundt Cakes, at the transferee's own expense, within the specified timeframe. A transfer fee is also required: $10,000 in the event of a transfer under Section 17.3(i), or $5,000 in the event of a transfer under Sections 17.3(ii), (iii) and (iv). This fee covers administrative and other expenses incurred by Nothing Bundt Cakes in connection with the transfer, including any brokerage fees or commissions.