Aunt Millies Bakeries Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$36,988 - $171,494
Franchise Fee
$10,000
Min Cash Required
$330
Total US Locations
561
Business Summary
Aunt Millie's Bakeries manufactures and distributes fresh bakery products like bread, rolls, cakes, cookies, and muffins under various brand names such as Aunt Millie’s, Koepplinger, Sunbeam, and Hillbilly. Aunt Millie's Bakeries sells distributorships to independent business entities, usually corporations, who then operate the business by distributing and selling these products directly to grocery stores, restaurants, and other institutions within an assigned sales area. This business model primarily uses a "Direct Store Delivery" approach, where distributors physically deliver and merchandise products to wholesale customers.
Corporate History
Aunt Millie's Bakeries began its long history on March 24, 1903, when it was founded as Perfection Bakeries, Inc. in Indiana. From its very beginning, the company focused on manufacturing and distributing fresh baked goods like bread, rolls, cakes, and cookies. For most of its history, Perfection Bakeries, Inc. distributed its products using its own employees and vehicles. A significant change occurred in 2005 when the company adopted "Aunt Millie's Bakeries" as its trade name. The following year, in March 2006, Aunt Millie's Bakeries started offering franchises, inviting independent distributors to become part of its network. These initial franchising efforts focused on states like Illinois, Indiana, Kentucky, and Michigan, allowing business entities to distribute Aunt Millie's products to stores and restaurants.
Financial Overview
Investment Range
$36,988 - $171,494
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$100,000
Minimum Cash Required
$330
Equipment Costs (Low)
$2,955
Equipment Costs (High)
$55,000
Working Capital
$1,818
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Perfection Bakeries, Inc., which operates Aunt Millie's Bakeries, has shown some ups and downs in its financial standing. In 2023, the company reported a net income of about $14.2 million, which is a positive turnaround from a net loss of approximately $5.3 million in 2022. This also helped them shift from negative retained earnings in 2022 to positive retained earnings in 2023. However, Aunt Millie's Bakeries has consistently operated with negative working capital in both 2022 and 2023, meaning their short-term debts were greater than their short-term assets. It's also worth noting that in September 2022, the company was not in compliance with some of its loan agreements, but they addressed this by amending their credit agreement and receiving waivers, and were back in compliance by September 2023. Despite these points, the company's independent auditors issued a 'clean' or unqualified opinion on their financial statements, which means the auditors believe the financial reports are presented fairly and accurately, and they did not raise any concerns about the company's ability to continue operating.
Financing Details
Aunt Millie's Bakeries offers financing help for a significant portion of your initial franchise fee through its affiliate, First Capital Acceptance Corp. This financing can cover up to 90% of the initial franchise fee, which itself ranges from $30,000 to $100,000 depending on the sales area. The loan comes with an annual interest rate of 10.5% and a repayment period of 10 years, meaning 120 equal monthly payments. To secure this loan, First Capital Acceptance Corp. will take a security interest in your franchise rights, all your accounts receivable, and other related assets like equipment and inventory. You won't need to provide a personal guarantee, and you can pay off the loan early without any penalty. At closing, there's a loan fee of $350 plus half a percent (0.5%) of the loan amount, both of which can be included in your financing. If you choose this option, Aunt Millie's Bakeries is authorized to automatically deduct your monthly loan payments and any insurance premiums (if purchased through an approved program) directly from your weekly sales settlements. You will need to meet First Capital Acceptance Corp.'s credit requirements to qualify. For the remaining 10% of the initial franchise fee, Aunt Millie's Bakeries has made arrangements with a third-party company called Distribution Services of America, Inc. (DSA). This is an optional financing choice, and Aunt Millie's Bakeries does not directly endorse or guarantee this loan. DSA offers a 5-year repayment plan with 60 equal monthly installments. The exact annual interest rate for this loan will be set about a month before your closing date. Like the First Capital loan, DSA will take a security interest in your franchise rights and related business assets. No personal guarantee is required, and you can pay this loan off early without penalty. There is a $400 loan origination fee for DSA, which can also be financed. You will need to meet DSA's credit requirements to qualify for their financing. Beyond the initial fees, Aunt Millie's Bakeries also provides credit for your weekly product purchases. You'll buy products daily and pay for them weekly, with no interest or extra fees charged for this credit. However, Aunt Millie's Bakeries will hold a security interest in your franchise, distribution rights, vehicle, and accounts receivable to ensure these product payments. If you decide to sell or transfer your Distribution Rights and have built up equity (meaning the value exceeds any outstanding loan balances), Aunt Millie's Bakeries will pay out that equity over a specific timeframe. For equity up to $10,000, you'll receive payment 30 days after closing. For amounts between $10,000 and $50,000, payments are made evenly over 30, 60, and 90 days. For equity between $50,000 and $100,000, payments are spread evenly over 30, 60, 90, 120, 150, and 180 days. For equity between $100,000 and $200,000, you'll receive even monthly payments over 12 months, with First Capital Acceptance Corp. paying interest at their current line of credit rate (not exceeding 5% annually). If your equity is more than $200,000, payments will be spread evenly over 24 months, also with interest from First Capital Acceptance Corp. at up to 5% annually. Please note that First Capital Acceptance Corp. can change these payment terms.
Performance Metrics
Total US Locations
561
Franchised Units
170
Corporate Units
391
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Aunt Millie's Bakeries has a clean legal record with no lawsuits or legal disputes to report.
Bankruptcy History
Aunt Millie's Bakeries has no bankruptcy history to report.
Agreement Terms
Training & Support Program
Franchisor Assistance
Aunt Millie's Bakeries provides support to its distributors both before and after they open for business. Before opening, Aunt Millie's Bakeries will assign the distributor an exclusive sales area. Once the business is operational, Aunt Millie's Bakeries helps by giving credit for damaged or expired products returned promptly and will purchase properly filled-out charge slips from the distributor. Aunt Millie's Bakeries also makes commercially reasonable efforts to deliver enough products to supply the sales area, assist in developing new customer accounts, and develop new and improve existing products. They also work to help with sales efforts and negotiate with larger retail chains on behalf of the distributors. In certain termination scenarios, Aunt Millie's Bakeries may operate the business for the distributor's account if resources are available. For technology, Aunt Millie's Bakeries offers a hand-held computer system for ordering and billing, and if distributors get it from them, Aunt Millie's Bakeries covers the hardware, software, maintenance, repairs, updates, and upgrades. While Aunt Millie's Bakeries does not generally conduct system-wide advertising, distributors can optionally enter into an Advertising Agreement to display Aunt Millie's Bakeries decals on their vehicle and advertise on their clothing for a weekly payment. Aunt Millie's Bakeries typically expects distributors to have prior work experience, so extensive training is not usually provided, but one-on-one orientation is available if needed.
Ongoing Support
After a franchisee opens their Aunt Millie's Bakeries business, they receive several types of ongoing support. Aunt Millie's Bakeries works hard to make sure franchisees receive enough products to supply their customers and actively tries to help develop new sales locations (outlets). The company also puts effort into developing new products and ensuring the quality and appeal of existing products in the market. They will work with franchisees to assist in sales efforts and negotiate on their behalf with larger chain stores. Franchisees get credit for any damaged or expired products they return promptly, and Aunt Millie's Bakeries will buy properly completed charge slips from them, adjusting for any differences found through scan-based trading accounts. For managing daily operations, franchisees must use a special handheld computer system for ordering and billing. If a franchisee leases this computer system from Aunt Millie's Bakeries, the company provides all the necessary hardware and software, along with maintenance, repairs, and updates, at no extra cost beyond a weekly use fee of $30 (plus estimated taxes). If a franchisee gets the computer system from another approved supplier, they are responsible for all maintenance, updates, and upgrades to meet Aunt Millie's Bakeries' standards, and there are no set limits on how often or how much these might cost. Aunt Millie's Bakeries doesn't require franchisees to participate in a system-wide advertising program, and franchisees don't pay into an advertising fund. However, as an optional choice, a franchisee can sign an Advertising Agreement with Aunt Millie's Bakeries. Under this agreement, Aunt Millie's Bakeries will pay the franchisee $60 per week to display advertising decals on their delivery vehicle and another $60 per week to wear branded clothing. Aunt Millie's Bakeries handles the cost of applying and removing these advertising materials. Generally, Aunt Millie's Bakeries expects franchisees to already have experience similar to the distribution business and does not provide formal ongoing training or an operations manual. However, if a franchisee lacks prior work experience, one-on-one orientation will be provided if it's needed.
Franchise Requirements
Ideal Candidate Profile
Aunt Millie's Bakeries is looking for business entities, typically corporations, where a single individual owns a controlling interest and is responsible for signing the franchise agreements. The company prefers candidates who already have experience in a similar distribution business and are familiar with how these operations work, as this often means they'll need less initial training. Additionally, ideal candidates for an Aunt Millie's Bakeries franchise should show that they have the drive and capability to manage a sales area that could be quite large. While there's no requirement for the owner to personally operate the business day-to-day, the corporate franchisee and its main shareholder are held accountable for making sure the business follows all the rules of the Distribution Agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Mobile
Territory Type
Limited
Territory Size Requirements
Aunt Millie's Bakeries grants its franchisees an exclusive sales area, which is a specific geographic region defined by streets, highways, or natural boundaries. These sales areas can vary greatly in size, from as small as three square blocks in a city to over 300 square miles, depending on factors like population density, product demand, and other demographics. There isn't a typical size, but the area must be manageable for a distributor to deliver products to every customer daily and safely. The defined sales area may also include or exclude certain customer locations, known as "additions" or "exceptions," based on specific delivery needs or logistical challenges.
Staffing Notes
Aunt Millie's Bakeries doesn't require the franchise owner to personally operate the business. Owners are free to hire employees or independent contractors to manage daily tasks. However, the corporate franchisee and its majority shareholder remain responsible for ensuring that all hired staff comply with the Distribution Agreement and all federal, state, and local employment laws. This includes handling worker’s compensation, unemployment insurance, and payroll taxes correctly. The staffing should be sufficient to consistently develop and maximize product sales in the assigned area, keep all customer outlets stocked with fresh products, properly rotate inventory, promptly remove any stale or expired items, support Aunt Millie's marketing efforts, operate a computer-assisted record-keeping system, and provide excellent service to all customer outlets.