What administrative activities does the transfer fee for Aunt Millies Bakeries cover?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §7.5 PAYMENT OF FEE: In the event of a sale or transfer by DISTRIBUTOR, or by AUNT MILLIE'S for the account of DISTRIBUTOR, of all or any portion of the Distribution Rights, DISTRIBUTOR shall pay a Transfer Fee to AUNT MILLIE'S in an amount equal to TWO PERCENT (2%) of the sales price, in full consideration for the administrative activities undertaken by AUNT MILLIE'S in connection therewith.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, if a distributor sells or transfers their distribution rights, they must pay a transfer fee to Aunt Millie's Bakeries. This fee is equal to 2% of the sales price.
The 2% transfer fee is charged to compensate Aunt Millie's Bakeries for the administrative activities they undertake in connection with the transfer. This implies that the fee covers the costs associated with processing the transfer, updating records, and ensuring a smooth transition to the new distributor.
Prospective franchisees should consider this transfer fee as a cost to be factored into any future sale of their distribution rights. It is important to understand exactly what administrative activities are covered by this fee to assess its reasonableness and to budget accordingly when planning an exit strategy.