When are the transfer fees due 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 is due upon request for transfer. If a franchisee sells their bakery, they must pay a $10,000 transfer fee, plus an additional $5,000 for a transfer opening advertising campaign. If the franchisee is a corporation, limited liability company, or partnership and is transferring ownership interests, the transfer fee is $5,000, plus any broker fees or commissions the franchisor incurs.
These fees are standard in the franchise industry and cover Nothing Bundt Cakes' administrative costs and the expenses associated with training and integrating a new franchisee or owner. The advertising fee ensures that the transfer of ownership is properly communicated to customers, maintaining brand awareness and sales momentum.
It is important to note that these fees do not include any broker fees or commissions that Nothing Bundt Cakes might incur during the transfer process. The franchisee is responsible for covering these additional costs. Additionally, the transfer is contingent upon receiving approval from Nothing Bundt Cakes, ensuring that the new franchisee or owner meets their standards and qualifications.
Prospective franchisees should factor these transfer fees into their long-term financial planning, especially if they anticipate selling their bakery or transferring ownership interests in the future. Understanding the conditions and costs associated with transfers is crucial for making informed decisions about the franchise investment.