What is the transfer fee for a Nothing Bundt Cakes franchise?
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% 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, the transfer fee associated with selling a bakery is $10,000, in addition to a $5,000 transfer opening advertising campaign fee. This combined $15,000 is due upon request for the transfer. Franchisees must obtain approval from Nothing Bundt Cakes for any bakery transfer.
In the event a franchisee seeks to transfer the ownership interests of their franchise, 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 is due upon request for the transfer. Franchisees that are corporations, limited liability companies, or partnerships must obtain approval from Nothing Bundt Cakes for any transfer of ownership interests.
These transfer fees are typical in the franchise industry, as they cover the franchisor's administrative costs and ensure that the new franchisee meets their standards. The additional advertising fee for a bakery sale suggests Nothing Bundt Cakes wants to ensure a smooth transition and maintain brand awareness in the location. Prospective franchisees should factor these potential costs into their long-term financial planning and understand the conditions under which a transfer might occur.