What is the transfer fee for Nothing Bundt Cakes under Sections 17.3(ii), (iii) and (iv)?
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
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes's 2025 Franchise Disclosure Document, the transfer fee for specific transfer scenarios is $5,000. Specifically, this fee applies to transfers occurring under Sections 17.3(ii), (iii), and (iv) of the franchise agreement. These sections pertain to changes in ownership structure, such as the transfer of stock in a corporation, partnership interests, or membership interests in a limited liability company.
This fee covers Nothing Bundt Cakes's administrative and other expenses related to the transfer. These expenses may include reasonable brokerage fees or commissions, including those owed to employees for assisting franchisees in finding prospective transferees. It is important to note that this transfer fee is in addition to any other conditions that must be met for the transfer to be approved, such as the transferee meeting Nothing Bundt Cakes's standards and qualifications.
For a prospective Nothing Bundt Cakes franchisee, this means that if they decide to sell or transfer their franchise by transferring ownership in their business entity (rather than selling the bakery itself), they will be required to pay Nothing Bundt Cakes a $5,000 transfer fee. This is a notable cost to consider when planning for a potential exit strategy or changes in business ownership. Franchisees should also be aware of the other conditions and requirements that Nothing Bundt Cakes may impose on the transfer, as detailed in the franchise agreement.