In gyrokinetic theory, the quadratic nonlinearity is known to play an important role in the dynamics by redistributing (in a conservative fashion) the free energy between the various active scales. In the present study, the free energy transfer is analyzed for the case of ion temperature gradient driven turbulence. It is shown that it shares many properties with the energy transfer in fluid turbulence. In particular, one finds a (strongly) local, forward (from large to small scales) cascade of free energy in the plane perpendicular to the background magnetic field. These findings shed light on some fundamental properties of plasma turbulence, and encourage the development of large-eddy-simulation techniques for gyrokinetics.