About BIMBO FOODS BAKERIES DISTRIBUTION Franchise
Bimbo Foods Bakeries Distribution operates a nationwide network of independent distributors who deliver and merchandise fresh bakery products directly to retail food stores, drug stores, restaurants, convenience stores, and other outlets throughout the United States.
Through Direct Store Delivery routes, distributors bring nationally recognized brands such as Thomas', Arnold, Entenmann's, Sara Lee, Freihofer's, Brownberry, Barcel, and Takis to thousands of retail locations, managing product placement, rotation, and shelf presentation.
The customer base spans large grocery chains, drug stores, dollar stores, and small convenience stores, with distributors building direct relationships with store managers and buyers across their designated service areas.
BIMBO FOODS BAKERIES DISTRIBUTION Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $8,000 to $500,000 | One-time payment upon signing |
| Royalty Fee | None - Distributor income derived from product resale margin; Technology Fee of $19.82/week of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None required; optional advertising agreement available | National brand fund |
| Total Investment Range | $14,150 – $606,700 | Includes build-out, inventory, working capital |
The investment range of $14K–$607K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (None - Distributor income derived from product resale margin; Technology Fee of $19.82/week) and marketing fee (None required; optional advertising agreement available) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee (Route Purchase Price) | $8,000 | $500,000 |
| Additional Funds / Working Capital for General Operations | $1,500 | $6,500 |
| Opening Inventory | $2,500 | $15,000 |
| Vehicle | $0 | $80,000 |
| Hand-held Computer Ordering System | $1,300 | $2,000 |
| Initial Insurance Coverage | $500 | $1,200 |
| Incorporation Services | $350 | $2,000 |
| TOTAL | $14,150 | $606,700 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 2% of sale price (payable to BFBD for administrative activities; also applies if BFBD exercises right of first refusal) |
| Renewal Fee | None specified |
| Technology Fee | $19.82/week (non-refundable; covers handheld warranty, printer warranty, thermal paper, wireless access, mobile data, software licenses, technical support) |
| Loan Documentation Fee | $500 (new routes); $250 (partial route addition) |
| Loan Origination Fee | 0.5% of loan amount |
| Loan Reamortization Fee | $350 (when prepaying ≥$5,000 or ≥25% of outstanding balance) |
| Inventory Purchases (weekly) | $2,500 to $15,000/week |
| Long-Term Vehicle Lease (optional) | $700 to $1,800/month |
| Automobile/General Liability Insurance (optional via Acrisure) | $45 to $300/week |
| Accounting Services via DSA (optional) | $18 to $35/week |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | No mandatory training provided; voluntary orientation sessions may be offered periodically |
| Classroom Training | 0 mandatory; voluntary orientation sessions available at no charge |
| Additional Training | Voluntary orientation sessions and/or videos may be offered covering handheld device operation, general baking industry information, and understanding the Settlement Statement. Distributor responsible for all travel, lodging, and personal expenses for any voluntary sessions attended. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive geographic Sales Area (Distribution Agreement); specific named outlet list only (Sales Growth Agreement) |
| Exclusive Territory | Yes |
| Territory Size | Determined by BFBD based on proximity to warehouse, customer density, and anticipated sales volume; boundaries defined by streets, highways, political or natural boundaries |
| Description | Under the Distribution Agreement, Distributor receives exclusive right to sell Products to Outlets in a defined Sales Area via Direct Store Delivery; no relocation of Sales Areas permitted. Under the Sales Growth Agreement, rights are limited to specific named outlets only. BFBD retains right to sell via non-DSD methods (e.g., warehouse delivery, thrift stores) in any area. No right of first refusal or option for additional routes without separate purchase. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (automatic renewal for successive 10-year terms) |
| Renewal Conditions | Agreement automatically renews unless Distributor provides 90-day written Non-Renewal Notice before expiration. If no Non-Renewal Notice given, Distributor must execute new current-form agreement and FDD receipt upon BFBD request; failure to sign by 15 days before term end allows BFBD to refuse renewal. May require signing a new distribution agreement with materially different terms. |
| Transfer Fee | 2% of sale price |
| Transfer Conditions | Must submit Notice of Intent to Sell signed by both Distributor and proposed buyer. BFBD has 14-business-day right of first refusal and 14-business-day approval right. Proposed buyer must meet BFBD's then-current financial, experience, and background criteria; must sign current agreement; must not be a competitor. Transfer must be finalized within 45 days of approval or rights reset. General release required from selling distributor. |
| Termination for Cause | Curable breaches: 3 business days to cure after written notice; repeated breaches (4+ in 8 months) become non-curable chronic breach. Non-curable breaches include: failure to timely cure; chronic breach; frustration of agreement purpose (e.g., employee misclassification claim); threats to public health/safety or brand reputation; violence or harassment; fraud, theft, or criminal activity; material misrepresentation; default under Security Agreement. |
| Non-Compete Period | During term only (no post-termination non-compete) |
| Non-Compete Details | During the term, Distributor may not sell products that compete with any Products sold under BFBD Marks, engage in activities that could contaminate Products, or present risk of harm to BFBD brands. Family members and employees of Distributor may not work for BFBD or competitors. No post-termination non-compete covenant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Distributor is not required to personally operate the distribution business. May hire employees or independent contractors to perform obligations. Distributor remains responsible for ensuring all employees/contractors comply with agreement terms and applicable laws, including labor, wage/hour, workers' compensation, and payroll tax requirements. |
| Required Suppliers | BFBD and its designated affiliates (Bimbo Bakeries USA, Inc. and related entities) for all bakery products |
| Supply Restrictions | All products must be purchased exclusively from BFBD or its designated affiliates. Handheld computer and printer must be compatible with BFBD systems and may be purchased from BFBD or approved vendors. No other required designated suppliers for goods or services. |
| Franchisor Revenue from Suppliers | 100% of BFBD's total revenue of $3.633 billion in most recent fiscal year derived from required product/service purchases by distributors. Products sold at bona fide wholesale prices that provide BFBD a profit margin but do not constitute additional franchise fees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Optional financing available through Advantafirst Capital Financial Services, LLC (ACF), an affiliate of Bimbo Bakeries Inc. ACF finances up to 95% of the initial purchase fee/price of Distribution Rights, subject to geographic caps and lender qualification criteria. Terms: 10-year term; interest rates of 9.75% (strong credit), 10.75% (less than strong credit), or 11.00% (equipment-only); monthly payment approximately $13.08 per $1,000 borrowed; no prepayment penalty (reamortization fee of $350 if prepaying ≥$5,000 or 25% of balance); security interest in Distribution Rights and related assets plus personal guaranty required. Loan documentation fee of $500 (or $250 for partial route) and origination fee of 0.5% of loan amount apply. Computer equipment may also be financed through ACF on similar terms. |
BIMBO FOODS BAKERIES DISTRIBUTION Franchise Earnings — Item 19
BIMBO FOODS BAKERIES DISTRIBUTION does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
BIMBO FOODS BAKERIES DISTRIBUTION Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
BIMBO FOODS BAKERIES DISTRIBUTION System Growth
BIMBO FOODS BAKERIES DISTRIBUTION currently operates 6454 franchised locations and 503 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 463 | 230 | 6194 |
| 2023 | 1110 | 302 | 6381 |
| 2024 | 2968 | 296 | 6454 |
Transfers: 352 | Closures: 296
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Mancera, S.C. (A Member Practice of Ernst & Young Global Limited) for year ending December 31.
BIMBO FOODS BAKERIES DISTRIBUTION Franchise — FAQ
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