How is the initial franchise fee for Aunt Millies Bakeries determined?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTIMATED INITIAL INVESTMENT**
| Type of Expenditure | Amount | Method of Payment | When Due | Payee |
|---|---|---|---|---|
| Initial Franchise Fee1 | $30,000 to $100,000 | Lump sum | At closing | Us |
| Computer use2 | $455 ($35/week) | Weekly installments | As billed | Us |
| Sales/Use Tax3 | $27 to $39 ($2 to $3 weekly) | Weekly installments | As billed | Us |
| Vehicle4 | $2,500 to $55,000 | Lease or |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–17)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the initial franchise fee ranges from $30,000 to $100,000. The exact amount is determined by Aunt Millies Bakeries and depends on the historical sales volume of the sales area covered by the franchise. This fee is paid in a lump sum at the time of closing.
Prospective franchisees should be aware that this initial franchise fee is just one component of the total estimated initial investment, which ranges from $36,988 to $186,494. Other significant costs include products for the first week (inventory), which can range from $3,000 to $25,000, and a vehicle, which can range from $2,500 to $55,000 depending on whether it is leased or purchased.
Aunt Millies Bakeries offers options for financing the initial franchise fee. Franchisees can finance 90% of the fee through First Capital Acceptance Corp., which requires a loan fee of $350 plus 1/2% of the loan amount. They can also finance the remaining 10% through Distribution Services of America, Inc. (DSA), which charges a loan origination fee of $400. Both loan fees can be financed. It is important for prospective franchisees to carefully consider their financing options and the associated costs.