What conditions must be met to qualify for financing from Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Conditions. You must meet First Capital's credit requirements.
Completely independent of Aunt Millie's Bakeries, we have made arrangements through a third party unrelated to Aunt Millie's Bakeries, Distribution Services of America, Inc. ("DSA") to offer financing covering the remaining 10% of the initial franchise fee. This financing is optional and Aunt Millie's Bakeries does not arrange, endorse, or guarantee it in any way. The terms of the loan are summarized below. References to agreements and sections (i.e., DSA Promissory Note, §1) relate to the DSA Financing Documents included for your convenience and referenced as Exhibit J to this Franchise Disclosure Document.
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- Conditions. You must meet DSA's credit requirements.
Source: Item 10 — FINANCING (FDD pages 21–24)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, there are a few financing options available, each with its own set of conditions. For optional financing arranged by Aunt Millie's Bakeries through First Capital Acceptance Corp., a prospective franchisee must meet First Capital's credit requirements to qualify for up to 90% financing of the initial franchise fee. Similarly, for the supplemental optional financing available through Distribution Services of America, Inc. (DSA), a franchisee must meet DSA's credit requirements to finance the remaining 10% of the initial franchise fee.
It's important to note that Aunt Millies Bakeries does not directly provide financing but has made arrangements with third-party lenders. These financing options are not guaranteed, endorsed, or arranged by Aunt Millie's Bakeries, and they are subject to the franchisee's qualification and the lender's approval. The annual percentage rate for First Capital financing is 10.5% with a 10-year repayment period, while the DSA financing rate is established 30 days prior to closing with a 5-year repayment period.
Prospective franchisees should carefully review the terms and conditions of each financing option, including interest rates, repayment schedules, security requirements, and default provisions. They should also assess their own creditworthiness and financial situation to determine which financing option, if any, is suitable for their needs. It is advisable to consult with a financial advisor to make an informed decision about financing a franchise with Aunt Millies Bakeries.