What are all the fees that an Aunt Millies Bakeries franchisee might pay to the franchisor, as detailed in Items 5, 6, and 7?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
1 The amount of the initial franchise fee will be determined by us and will depend on the historical sales volume for the Sales Area covered by the franchise.
2 We will offer you the use of a hand-held computer system, compatible with our system. The weekly use rate for the hand-held computer system, including maintenance, is currently $30. In addition, we charge you $5 a week for printer paper and ribbons that are compatible with the hand-held computer. This fee is not refundable.
3 We will charge you sales and use taxes on the computer use and computer supplies. The amount of taxes will vary by state. We estimate they will be between $2 and $3 per week.
- 5 You have the option of financing 90% of the initial Franchise Fee (see Item 10 of this Franchise Disclosure Document).
If you elect to obtain financing from First Capital Acceptance Corp., ("Lender" or "First Capital"), you must pay a Loan Fee equal to $350 plus 1/2% of the loan amount.
The Loan Fee may be financed; see Item 10.
- 6 You have the option of financing the remaining 10% of the initial Franchise Fee from Distribution Services of America, Inc. ("DSA"), which is not affiliated with Aunt Millie's Bakeries (see Item 10 of this Franchise Disclosure Document).
If you finance with DSA, you must pay DSA a loan origination fee of $400.
The loan origination fee may be financed; see Item 10.
- 7 The range shown is for 1 week's worth of Products (inventory).
You will purchase Products from us in quantities to meet the requirements of the Outlets in your Sales Area.
9 You must purchase the comprehensive general liability insurance, automobile liability insurance, and product liability insurance coverages set forth in the Aunt Millie's Bakeries Security Agreement attached as Exhibit H to this Franchise Disclosure Document.
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- Late Charges. If First Capital has not received the full amount of any monthly payment by the end of 15 calendar days after the due date, First Capital will charge a late charge fee in the amount of 5% of the overdue monthly payment (Promissory Note, §7.a.).
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- The Franchisor may increase the weekly fees related to your computer use. There are no limits on the Franchisor's right to increase these fees.
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, franchisees can expect to pay several fees to the company. The initial franchise fee depends on the historical sales volume of the sales area. Franchisees also pay a weekly fee of $30 for the use of a hand-held computer system, which includes maintenance, and $5 per week for printer paper and ribbons. Sales and use taxes on the computer use and computer supplies are also charged, estimated to be between $2 and $3 per week, varying by state.
If a franchisee chooses to finance 90% of the initial franchise fee through First Capital Acceptance Corp., they will incur a loan fee of $350 plus 1/2% of the loan amount. Financing the remaining 10% of the initial franchise fee through Distribution Services of America, Inc. (DSA) involves a loan origination fee of $400. These loan fees can also be financed. Franchisees must also purchase products from Aunt Millie's Bakeries to meet the demands of their sales area.
Other potential fees include late charges if loan payments to First Capital are not made on time, amounting to 5% of the overdue monthly payment if the payment is more than 15 calendar days late. Additionally, franchisees are obligated to purchase specific insurance coverages, with the estimated quarterly premium disclosed in the FDD, although actual costs may vary. The franchisor may increase the weekly fees related to your computer use, and there are no limits on the Franchisor's right to increase these fees.