To whom do I pay the loan origination fee for an Aunt Millies Bakeries franchise?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 Purchase | As arranged | Non-affiliated third party vendor |
| Loan Fees to First | $0 to $800 | Lump Sum | At closing | First Capital |
| Capital5 | ||||
| Loan Origination Fee | $0 to $400 | Lump Sum | At closing | DSA |
| to DSA6 | ||||
| Products for 1 week | $3,000 to $25,000 | Lump Sum | Weekly | Us |
| (Inventory)7 | ||||
| Vehicle Maintenance8 | $156 to $780 | As needed | As needed | Third party vendor |
| Initial Insurance Coverage9 | $520 to $715 | Weekly installments | As billed | Non-affiliated third party insurer |
| Additional Funds10 | $330 to $3,305 | Not Applicable | Not Applicable | Not Applicable |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–17)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, if you choose to finance the remaining 10% of the initial franchise fee through Distribution Services of America, Inc. (DSA), you are required to pay DSA a loan origination fee. This fee ranges from $0 to $400 and is due in a lump sum at closing. The loan origination fee can be financed as well.
This means that as a prospective Aunt Millies Bakeries franchisee, you have the option to finance a portion of your initial franchise fee, but this comes with an additional cost in the form of a loan origination fee. It is important to consider this fee when evaluating your financing options and overall investment.
Typical franchise agreements often involve various fees payable to the franchisor or third-party vendors. In this case, the loan origination fee is specifically paid to DSA, a non-affiliated entity, for their services in providing financing. Therefore, it is essential to understand the different parties involved and where your payments are directed.