What is the Loan Documentation fee 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). In the event that you purchase a partial route, you will be responsible for a $250 documentation fee (in lieu of the $500). There is no bank origination fee for the purchase of a partial route. | | Fee (1) | | | | | Loan Reamortization Fee (1) | $350 | When/if you prepay your loan in an amount equal to the greater of $5,000 or 25% of the then outstanding principal balance. | To cover lender's administrative cost of reamortizing the loan balance. | | Technology Fee (2) | $19.82 | Weekly | Withheld by BFBD to cover: Ongoing warranty for hand-held throughout time in service Ongoing warranty for printer throughout |
| Inventory Purchases | $2,500 - $15,000 | Weekly | time in service Thermal paper as reasonably needed for printer Wireless access for Route to Market (RTM) system in sales center Support for home or store Wi-Fi access Mobile data (cellular) service for handheld Software licenses & feature development for included apps Continued updates and enhancements t
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, the Loan Documentation Fee is $500, which is due upon loan closing. This fee covers the lender's administrative cost of processing the loan. In addition to the documentation fee, if a franchisee purchases a full route, they are responsible for a bank origination fee of 0.5% (0.005) of the loan amount. However, if a franchisee purchases a partial route, the documentation fee is $250 instead of $500, and there is no bank origination fee.
This means that a prospective Bimbo Foods Bakeries Distribution franchisee needs to budget for these loan-related fees when securing financing. The Loan Documentation Fee is non-refundable, so it is important to factor this into the initial investment. The difference in fees between purchasing a full versus a partial route is also significant, with a partial route having a lower documentation fee and no origination fee.
Franchisees should confirm with the lender all applicable fees and understand the terms of the loan agreement. It is also important to note that these fees are uniformly imposed on all Bimbo Foods Bakeries Distribution franchisees.