What loan origination fee must be paid to Aunt Millies Bakeries at closing?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
of the note (Promissory Note, §7.c.).
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- Closing Fees. At closing, you must pay 1/2% of the loan amount as an origination fee plus $350 as a loan fee. Both of these fees may be financed.
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- Conditions.
Source: Item 10 — FINANCING (FDD pages 21–24)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, there are two potential loan origination fees that a franchisee might encounter depending on the financing option they choose. If a franchisee opts for financing through First Capital Acceptance Corp., Aunt Millie's Bakeries' affiliated lender, they must pay an origination fee equal to one-half of one percent (0.5%) of the loan amount, plus a $350 loan fee at closing. Both of these fees can be included in the financing.
Alternatively, if a franchisee chooses to pursue supplemental financing through Distribution Services of America, Inc. (DSA), which is independent of Aunt Millie's Bakeries and First Capital, they will be required to pay a $400 loan origination fee to DSA at closing.
It is important to note that these are two distinct financing options, and the franchisee is not required to use either. The FDD indicates that Aunt Millie's Bakeries does not arrange, endorse, or guarantee the DSA financing in any way. The franchisee must meet the credit requirements of whichever lender they choose.