What is the payment structure for the initial franchise fee for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
1 The amount of the initial franchise fee will be determined by us and will depend on the historical sales volume for the Sales Area covered by the franchise.
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.
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the initial franchise fee's amount is determined by Aunt Millie's Bakeries based on the historical sales volume of the Sales Area covered by the franchise. The FDD indicates that franchisees have the option to finance a portion of the initial franchise fee through two different entities.
Specifically, Aunt Millie's Bakeries has an arrangement with First Capital Acceptance Corp., an affiliated lender, to offer financing for up to 90% of the initial franchise fee, subject to qualification. If a franchisee chooses to finance with First Capital, they will incur a loan fee of $350 plus 1/2% of the loan amount. This loan fee can also be financed.
Additionally, franchisees have the option to finance the remaining 10% of the initial franchise fee through Distribution Services of America, Inc. (DSA), which is not affiliated with Aunt Millie's Bakeries. If financing is obtained through DSA, a loan origination fee of $400 is required, which can also be financed. These financing options are presented as optional arrangements to assist franchisees.