What is the repayment term for the Aunt Millies Bakeries DSA Promissory Note?

According to the 2025 Aunt Millies Bakeries Franchise Disclosure Document, the repayment term for the DSA Promissory Note is 5 years. This financing option is offered through Distribution Services of America, Inc. (DSA), a third party unrelated to Aunt Millie's Bakeries, to cover the remaining 10% of the initial franchise fee.

For a prospective franchisee, this means that if they choose to finance the remaining 10% of the initial franchise fee through DSA, they will have a 5-year period to repay the loan. The DSA Promissory Note is secured by the franchisee's rights under the franchise, as well as all equipment, inventory, accounts receivable, goods, property, contract rights, chattel paper, and general intangibles relating to the franchise.

It is important to note that this financing is optional, and Aunt Millies Bakeries does not arrange, endorse, or guarantee it in any way. The annual percentage rate for the loan will be established 30 days prior to closing. Additionally, the franchisee can prepay the loan without incurring any penalties. Upon default, DSA may declare the entire principal balance immediately due and payable, with an interest rate of 16% per year calculated on a 360-day year. A late charge fee of 5% of the overdue monthly payment will be applied if payment is not received within 15 calendar days after the due date.