Does Transfer generate any files?

Yes, Transfer does generate files, however it doesn't generate .CFC files. Transfer generates files with the extension .transfer that are utilised by Transfer for building its generic TransferObjects at runtime to represent the Business Objects in your application.

So while Transfer handles generating your Business Objects for you at run time, it does not generate DAO's, Gateways, or Service Layer CFCs for you. This is so that you have complete freedom in how you develop and design your application, and are not tied to a specific development structure.