What is the range for the initial franchise 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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–17)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the initial franchise fee ranges from $30,000 to $100,000. This fee is paid in a lump sum at the time of closing the franchise agreement and is payable to Aunt Millies Bakeries. The FDD indicates that the amount of the initial franchise fee is determined by Aunt Millies Bakeries and depends on the historical sales volume for the sales area covered by the franchise.
For a prospective franchisee, this means the upfront cost to join the Aunt Millies Bakeries system can vary significantly based on the assigned territory's sales performance. It is important to understand how the sales area is defined and what historical data Aunt Millies Bakeries uses to determine the fee. This initial franchise fee is only one component of the total estimated initial investment, which ranges from $36,988 to $186,494.
Furthermore, the FDD mentions the option to finance 90% of the initial franchise fee through First Capital Acceptance Corp, and the remaining 10% through Distribution Services of America, Inc. However, these financing options come with additional loan fees. Specifically, a loan fee of $350 plus 1/2% of the loan amount is charged by First Capital, and a loan origination fee of $400 is charged by DSA. These fees can also be financed. Therefore, a potential franchisee should carefully consider the costs and benefits of financing the initial franchise fee versus paying it upfront.