What was the approximate amount of sales through SBT for Aunt Millies Bakeries in fiscal year 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
OS"), who sell and deliver those products to outlets of retail accounts that are within the IOs' defined geographic territory. The IOs sell products using either SBT technology, authorized charge tickets, or cash sales. The Company recognizes deferred revenue from
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the company recorded approximately $263,000,000 in sales through Scan Based Trading (SBT) for the fiscal year 2023. SBT is a technology that allows retailers to pay Aunt Millies Bakeries for products actually purchased by consumers, based on the retailer's scan system, rather than on the amount of product delivered to the retailer. This arrangement means that Aunt Millies Bakeries carries the inventory at the retailer's location and enters into a shrink share arrangement with the retailer.
For a prospective franchisee, this indicates that a significant portion of Aunt Millies Bakeries's sales are conducted through SBT arrangements. Revenue is only recognized when the product is purchased by the consumer, not when it's delivered to the retailer. This deferred revenue is also reflected in the document, with approximately $1,400,000 recorded as deferred revenue as of September 30, 2023.
This sales model affects how Aunt Millies Bakeries manages its inventory and revenue recognition. The company retains control of the inventory until it is scanned at the reseller's register, meaning the company bears the risk until the point of consumer purchase. The use of SBT and the associated deferred revenue recognition are important factors for a potential franchisee to understand, as they influence the financial reporting and inventory management practices of Aunt Millies Bakeries.