What is the interest rate charged by ACF for Bimbo Foods Bakeries Distribution franchisees?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) ACF's interest rate as of January 1, 2025 for individuals with strong credit is 9.75%, for individuals with less than strong credit is 10.75%, and for equipment-only purchases is 11%.
ACF's rates are subject to change without notice.
- (8) A "default" includes defaults under any other agreement between the borrower and ACF.
This balance shall bear an interest rate of 12% per year (calculated on the basis of a 360-day year).
You must pay all of the lender's costs and expenses of collection, including attorneys' fees and expenses (Promissory Note, Sections 2, 6 and 7).
Source: Item 10 — FINANCING (FDD pages 35–37)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the interest rates offered by Advantafirst Capital Financial Services, Inc. (ACF) vary based on creditworthiness and the type of purchase. As of January 1, 2025, individuals with strong credit may qualify for an interest rate of 9.75%. Franchisees with less than strong credit may face a higher rate of 10.75%. For franchisees only purchasing equipment, the interest rate is 11%.
It is important to note that these interest rates are subject to change without notice, so prospective Bimbo Foods Bakeries Distribution franchisees should confirm the current rates with ACF at the time of application. ACF is a subsidiary of Bimbo Bakeries Inc., which is a U.S. subsidiary of Grupo Bimbo. This financing option is not mandatory, and franchisees are free to seek financing from other lenders, provided that the terms do not conflict with Bimbo Foods Bakeries Distribution's agreements.
In the event of default, a Bimbo Foods Bakeries Distribution franchisee may be subject to a default interest rate of 12% per year, calculated on a 360-day year, on any outstanding balance owed to ACF. This default interest rate underscores the importance of maintaining good standing with ACF and adhering to the loan terms to avoid additional financial burdens. Additionally, the franchisee is responsible for covering all collection costs and expenses, including attorney's fees, incurred by the lender in the event of a default.