How is the Transfer fee for an Aunt Millies Bakeries franchise calculated, and when is it due?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the transfer fee is calculated as 2% of the sale price. This fee is due prior to the consummation of the transfer to anyone. The fee covers the administrative activities that Aunt Millies Bakeries undertakes in connection with the transfer of the franchise.

For a prospective franchisee, this means that if they decide to sell their Aunt Millies Bakeries franchise, they will need to pay 2% of the sale price to Aunt Millies Bakeries before the sale is finalized. For example, if a franchisee sells their franchise for $100,000, the transfer fee would be $2,000. This fee is in addition to any other costs associated with selling the franchise, such as legal fees or broker commissions.

Transfer fees are a common aspect of franchising, intended to compensate the franchisor for their time and expenses in approving the transfer and ensuring the new franchisee meets their standards. The fee amount can vary significantly among different franchise systems, with some charging a flat fee and others, like Aunt Millies Bakeries, basing it on a percentage of the sale price. It is important for prospective franchisees to understand all the costs associated with transferring a franchise before making a decision to buy or sell.