What are the ongoing fees associated with operating an Aunt Millies Bakeries franchise, as detailed in Items 6 and 7?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
rea 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.
- 4 If you do not currently own a delivery vehicle that is adequate to service the Sales Area with the Products, you must purchase or lease a delivery truck from a third party. The low estimate assumes you lease a vehicle. The high estimate assumes you purchase a new vehicle.
- 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. You will pick up the Products on a daily basis for daily delivery (Wednesdays and Sundays possibly excepted). You will pay us for the Products on a weekly basis. We anticipate, but do not guarantee, that your receipts from the Outlets to whom you deliver Products will exceed the price of the Products you purchase from us.
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the ongoing fees include a weekly fee of $30 for the use of a hand-held computer system, which includes maintenance. Additionally, there is a $5 weekly charge for printer paper and ribbons compatible with the hand-held computer. These fees are not refundable, and sales and use taxes will be charged on the computer use and supplies, estimated to be between $2 and $3 per week, varying by state.
Beyond these, franchisees must purchase products from Aunt Millie's Bakeries to meet the demands of their sales area, with payments made weekly. The FDD anticipates that receipts from outlets should exceed the price of the products purchased, potentially eliminating the need for franchisees to infuse their own funds. Franchisees are also responsible for vehicle maintenance, including oil, grease, tires, and routine upkeep, with estimates provided for the first three months of operation.
Furthermore, franchisees are required to maintain comprehensive general liability, automobile liability, and product liability insurance. The estimated quarterly premium for insurance is detailed, and if purchased through an approved vendor, it can be paid weekly. It is important to note that the franchisor may increase the weekly fees related to computer use, and there are no limits on the franchisor's right to increase these fees.