When is the final payment due for Aunt Millies Bakeries' 2018 pension withdrawal obligation?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
a final payment due on October 1, 2035.
During 2016, the Company negotiated a partial exit from one of its multiemployer defined benefit pension plans resulting in a pension withdrawal obligation expense of $2,092,477. The amount recorded represents the present value of the estimated payments, at 7.5% interest. The expected payment plan is based on monthly payments of $16,857, principal and interest, for 240 months or 20 years. Partial withdrawal payments were expected to begin in fiscal year
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the company negotiated an exit from a multiemployer defined benefit pension plan in 2018, resulting in a pension withdrawal obligation expense of $6,318,741. This amount represents the present value of estimated payments, calculated with a 6.72% interest rate.
The payment plan for this obligation consists of quarterly payments of $144,144, covering both principal and interest. These payments are scheduled over 80 quarters, which is equivalent to 20 years.
The payments began on March 11, 2019, and the final payment for the 2018 pension withdrawal obligation is due on December 11, 2038.