How does Aunt Millies Bakeries account for shipping and handling costs?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
han those listed above or added from time to time, products intended to be sold as frozen or refrigerated, unbranded, plain wrapped, or damaged, stale, or off code products or product produced to supplement bakery thrift store inventory to facilitate a thrift recovery system.
Perfection Bakeries, Inc.
350 Pearl Street Fort Wayne, Indiana 46802
SCHEDULE "C"
Independent Operator Special Charge Schedule
Special Delivery Fee: $60 per hour, when personnel and truck are available
(Special Deliveries made by Company, instances where customer demands product and I.O. cannot or will not
make the delivery)
Truck Drop Shipment Fee: $30 per hour
Short-Term Company Route Relief Fee: $275 per day, when personnel available
Settlement Inventory
Report Failure:
$300 per occurrence (for Quarterly Inventory Settlement
Only)
Special and/or
Short-Term
Merchandising Fee:
$40 per hour, when personnel available
(When Company personnel is needed to help merchandise at an I.O.'s request, or in instance where customer demands merchandising and I.O. cannot or will not provide service)
Misc. Equipment: At Current Cost
(Company will sell additional equipment at cost, i.e., hand
carts, price guns, etc. Subject to availability)
Rep
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the company addresses shipping and handling costs through a special delivery fee. This fee is listed in Schedule C, titled "Independent Operator Special Charge Schedule," and is set at $60 per hour when personnel and a truck are available. This fee applies in situations where Aunt Millies Bakeries makes special deliveries because the Independent Operator (I.O.) cannot or will not make the delivery themselves.
Additionally, Schedule C includes a "Truck Drop Shipment Fee" of $30 per hour. This fee is separate from the special delivery fee and may apply in different circumstances related to how products are transported and delivered. The document also mentions other potential charges such as fuel costs, truck rental, and toll fees, indicating that these could be passed on to the distributor under certain conditions.
It is important to note that these charges, as stated in the FDD, are subject to change by Aunt Millies Bakeries at any time. The distributor agrees that these non-recurring charges will be assessed and deducted from the weekly settlement, regardless of whether the distributor signs the form acknowledging these charges. This highlights the importance for prospective franchisees to stay informed about potential changes to these fees and how they might impact their overall costs and profitability.
Prospective franchisees should clarify with Aunt Millies Bakeries the specific conditions under which these fees are applied and how frequently they can expect to incur such charges. Understanding these costs is crucial for accurately forecasting expenses and managing the financial aspects of the franchise.