How is the Transfer fee calculated for an Aunt Millies Bakeries franchise?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer1 | 2% of sale | Prior to consummation of | To cover administrative activities we undertake |
| price | transfer to anyone | in connection with the transfer |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, a franchisee who transfers their franchise must pay a transfer fee. This fee is calculated as 2% of the sale price. The fee is due prior to the consummation of the transfer to anyone.
The purpose of this fee is to cover the administrative activities that Aunt Millies Bakeries undertakes in connection with the transfer. This suggests that the fee is intended to compensate Aunt Millies Bakeries for the costs associated with reviewing and approving the transfer, updating records, and providing support to the new franchisee.
Transfer fees are a common aspect of franchising, as franchisors need to ensure that any new franchisee meets their standards and is capable of operating the business successfully. The fee amount can vary across different franchise systems, but a percentage of the sale price is a fairly standard method of calculation. Prospective Aunt Millies Bakeries franchisees should consider this fee when planning for a potential sale of their franchise in the future.