What is the Loan Reamortization 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. |
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 franchisee may incur a Loan Reamortization Fee of $350. This fee is charged when a franchisee prepays their loan with an amount equal to the greater of $5,000 or 25% of the outstanding principal balance.
This fee covers the lender's administrative costs associated with recalculating and adjusting the loan repayment schedule due to the prepayment. It is important for prospective Bimbo Foods Bakeries Distribution franchisees to understand this fee, as it can impact their financial planning if they intend to make substantial prepayments on their loan.
Franchisees should factor this potential expense into their budget and consider the circumstances under which they might choose to prepay their loan. Understanding the conditions that trigger this fee allows franchisees to make informed decisions about loan management and prepayment strategies, ensuring they are aware of the associated costs.