What credit requirements must an Aunt Millies Bakeries franchisee meet to obtain financing?
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.
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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' 2025 Franchise Disclosure Document, franchisees seeking financing through First Capital Acceptance Corp. or Distribution Services of America, Inc. (DSA) must meet their respective credit requirements. Specifically, Item 10 states that to qualify for either financing option, you must meet First Capital's credit requirements for up to 90% financing of the initial franchise fee, and DSA's credit requirements for financing the remaining 10% of the initial franchise fee.
While the FDD stipulates that franchisees must meet the credit requirements of First Capital and DSA to obtain financing, it does not specify what these credit requirements are. This means the FDD does not provide details on the specific credit scores, debt-to-income ratios, or other financial metrics that First Capital or DSA might use to evaluate a franchisee's creditworthiness.
Prospective Aunt Millies Bakeries franchisees should directly inquire with First Capital and DSA about their specific credit requirements to determine eligibility for financing. Understanding these requirements is crucial for planning the financial aspects of opening a franchise.