Corner Bakery Cafe
Corner Bakery Cafe offers fast-casual dining with artisan breads, sandwiches, and baked goods. Known for its diverse menu of breakfast, lunch, and dinner items, it operates in the casual dining sector.
About Corner Bakery Cafe
Best Cafe Enterprises, LLC, doing business as Corner Bakery Cafe is an American chain of cafes that specialize in pastries, breads, breakfast dishes, gourmet sandwiches, homemade soups, salads, and pasta. Corner Bakery Cafe is considered to be a part of the fast casual market segment of the food service industry, offering a higher quality of food and atmosphere than a typical fast food restaurant, and offering limited table service.
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Corner Bakery Cafe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Corner Bakery Cafe ranges from $1,090,000 to $2,335,000. This includes $45,000 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000, which is fully earned by the company upon payment and is not refundable for any reason [p.11, p.72]. This fee constitutes part of the company's general operating funds as determined by them in their discretion [p.183].
What are the ongoing royalty and advertising fees?
The franchisee must pay a monthly royalty fee of 5% of gross sales, unless otherwise agreed upon [p.169]. Additionally, there is an ongoing monthly advertising fund contribution of 0.75% of gross sales, which increased to 1.25% as of January 1, 2025 [p.169].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term length isn't specified in these excerpts. However, you have the option to renew the franchise for up to two ten-year periods with the company's approval after the initial term ends [p.169].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without the franchisor's permission, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.180(g)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so. [p.180]
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory under the Franchise Agreement. However, you are granted a protected area around the Franchised Location where no other Cafes will be operated by the company or its affiliates during the term of the Franchise Agreement [p.37]. This protection does not extend to exclusive territory rights outside this defined area [p.65].
What training and ongoing support does the franchisor provide?
The franchisor provides an opening team of trainers for up to eight personnel for the first two franchised Cafes, with a minimum training period of 13 days. For the third franchised Cafe, they offer support from four personnel under similar conditions. Beyond three franchised Cafes, the franchisee must provide their own trainers or request the franchisor's support at an additional cost. Ongoing services include monthly royalty fees based on 5% of gross sales, advertising fund contributions, and obligations for ongoing marketing services such as producing media and advertisements [p.169]. The franchisor is also responsible for licensing intellectual property, updating the menu, training, advising, consulting, supporting, and overseeing quality control [p.169].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the total number of franchised outlets nor provide an exact count of those that have closed or been terminated. It only mentions that approximately 33% of franchised outlets and 41% of company-owned outlets were reacquired, terminated, or ceased operations during the last three years [p.4].
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide financial performance information under certain conditions, such as providing actual records of an existing outlet being considered for purchase. However, the franchisor does not make any representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets [p.50-51].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those menu items, products, and services that have been expressly approved for sale in writing by the franchisor. You must purchase and use in your Franchised Cafe the Technology System designated in the Manual. Additionally, you may need to buy or lease certain items from the franchisor or a limited group of suppliers they designate; these items might be more expensive than those available elsewhere [p.3].