What is the range for loan fees to First Capital when financing 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 |
| TOTAL | $36,988 to $186,494 |
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 a franchisee chooses to finance 90% of the initial franchise fee through First Capital Acceptance Corp., they will incur loan fees. These fees range from $0 to $800, payable in a lump sum at closing.
The loan fee to First Capital consists of $350 plus 1/2% of the loan amount. The FDD also states that this loan fee may be financed. This means that a prospective Aunt Millies Bakeries franchisee needs to consider this cost when planning their initial investment and financing strategy.
It's important to note that this financing option is specifically for 90% of the initial franchise fee. The remaining 10% can be financed through Distribution Services of America, Inc. (DSA), which has a separate loan origination fee. Therefore, franchisees should carefully evaluate the terms and costs associated with each financing option to determine the most suitable approach for their financial situation.