When is the Transfer Fee due for a Bimbo Foods Bakeries Distribution franchise transfer?
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. |
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 due prior to the consummation of the transfer. This applies to transfers to anyone, including Bimbo Foods Bakeries Distribution itself, unless Bimbo Foods Bakeries Distribution initiates the sale under Article 9 of the Distribution Agreement.
The Transfer Fee is calculated as 2% of the sale price. This fee is intended to cover the administrative activities that Bimbo Foods Bakeries Distribution undertakes in connection with the transfer.
It is important to note that this fee, like several others outlined in Item 6 of the FDD, is non-refundable, as indicated by footnote (1). Therefore, a prospective Bimbo Foods Bakeries Distribution franchisee should factor this cost into their financial planning when considering a potential transfer of their franchise.