What does the Transfer Fee cover 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. |
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 Transfer Fee is 2% of the sale price. This fee is due prior to the completion of the transfer to anyone, including Bimbo Foods Bakeries Distribution itself, unless Bimbo Foods Bakeries Distribution initiates the sale under Article 9 of the agreement.
The Transfer Fee is intended to cover the administrative activities that Bimbo Foods Bakeries Distribution undertakes in connection with the transfer. This suggests that the fee is used to offset the costs associated with processing the paperwork, updating records, and ensuring a smooth transition of the franchise to the new owner.
It is important to note that the Transfer Fee is a percentage of the sale price, meaning the higher the sale price, the higher the fee will be. Franchisees should factor this cost into their financial planning when considering selling their Bimbo Foods Bakeries Distribution franchise. Additionally, the fee is due prior to the completion of the transfer, so franchisees will need to have the funds available at that time. The FDD specifies that the fee applies even when transferring back to Bimbo Foods Bakeries Distribution unless the company initiates the sale, which is an important distinction for franchisees to understand.