When is the Loan Documentation fee due for a Bimbo Foods Bakeries Distribution franchise?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee | Amount Due | Due Date | Remarks |
| Transfer Fee (1) | 2% of sale price | Prior to consummation of transfer to anyone (including BFBD, unless BFBD initiates the sale under Article 9 of your Agreement) | To cover administrative activities undertaken by BFBD in connection with the transfer. |
| Loan Documentation | $500 | Upon loan closing | To cover lender's administrative cost of processing the loan. In addition, you will be responsible for a bank origination fee of .5% (.005) of the loan amount (for purchase of a full route). |
Source: Item 6 — OTHER FEES (FDD pages 30–32)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, a Loan Documentation Fee of $500 is due upon loan closing. This fee covers the lender's administrative cost of processing the loan.
In addition to the Loan Documentation Fee, franchisees are responsible for a bank origination fee of 0.5% (0.005) of the loan amount if purchasing a full route. However, if a franchisee purchases a partial route, they will be responsible for a $250 documentation fee instead of the $500 fee, and there is no bank origination fee for the purchase of a partial route.
It is important to note that this fee, like several others listed in Item 6 of the FDD, is non-refundable, as indicated by footnote (1). Prospective franchisees should factor these costs and conditions into their financial planning.