What does the transfer fee cover for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §7.5 PAYMENT OF FEE: In the event of a sale or transfer by DISTRIBUTOR, or by AUNT MILLIE'S for the account of DISTRIBUTOR, of all or any portion of the Distribution Rights, DISTRIBUTOR shall pay a Transfer Fee to AUNT MILLIE'S in an amount equal to TWO PERCENT (2%) of the sales price, in full consideration for the administrative activities undertaken by AUNT MILLIE'S in connection therewith.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the transfer fee covers the administrative activities that Aunt Millie's undertakes when a distributor sells or transfers their distribution rights. The transfer fee is equal to 2% of the sale price.
This means that if a distributor decides to sell their rights to another party, Aunt Millie's Bakeries will collect 2% of the total sales price to cover their costs associated with processing the transfer. These administrative activities likely include reviewing the potential buyer, updating the distribution agreements, and ensuring a smooth transition of the distribution rights.
It is important to note that this fee is only for the administrative activities undertaken by Aunt Millie's Bakeries. The distributor is still responsible for other costs associated with the sale, such as legal fees and any costs associated with preparing the distribution area for the new distributor.