What is the transfer fee for Nothing Bundt Cakes under Section 17.3(i)?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
n 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
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 must pay a transfer fee in the event of a transfer under specific conditions. If a franchisee transfers their Nothing Bundt Cakes franchise under Section 17.3(i) of the franchise agreement, the transfer fee is $10,000.
This fee is intended to cover Nothing Bundt Cakes's administrative and other expenses associated with the transfer process. These expenses can include legal fees, as well as any brokerage fees or commissions Nothing Bundt Cakes is required to pay. This may also include commissions owed to Nothing Bundt Cakes employees for their assistance in helping franchisees locate prospective transferees.
It is important to note that Nothing Bundt Cakes will not charge an initial franchise fee in connection with a transfer. The prospective transferee must still meet certain requirements, including application procedures, educational, managerial, and business standards, good moral character, business reputation, credit rating, aptitude, ability, and adequate financial resources. The transferee also cannot be in the same business as Nothing Bundt Cakes, with the exception of an existing Nothing Bundt Cakes franchisee. The transferee must also complete the initial training program at their own expense.