About Corner Bakery Cafe Franchise
Corner Bakery Cafe is a fast casual restaurant franchise offering a menu of artisan breads, salads, sandwiches, soups, and baked goods for breakfast, lunch, and dinner.
The concept provides a casual, welcoming atmosphere for individuals and families seeking quality meals with seasonal, innovative menu options.
The franchise fee is $40,000, and the brand has been franchising since 2024.
Corner Bakery Cafe Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.75% of Gross Sales (National Marketing Fund Contribution) | National brand fund |
| Total Investment Range | $1,090,000 – $2,168,000 | Includes build-out, inventory, working capital |
The investment range of $1.1M–$2.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (0.75% of Gross Sales (National Marketing Fund Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Pre-Construction Costs | $25,000 | $144,000 |
| Construction Costs | $450,000 | $830,000 |
| Front of House Furniture, Fixtures & Equipment | $40,000 | $89,000 |
| Back of House Furniture, Fixtures & Equipment | $208,000 | $300,000 |
| Smallwares | $23,000 | $40,000 |
| Technology System | $45,000 | $65,000 |
| Catering Equipment | $35,000 | $45,000 |
| Initial Franchise Fee | $40,000 | $40,000 |
| Grand Opening Marketing | $15,000 | $15,000 |
| Training | $40,000 | $100,000 |
| Inventory | $14,000 | $25,000 |
| Security Deposits | $5,000 | $25,000 |
| Additional Funds – 3 Months | $150,000 | $450,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Franchise Agreement: $3,500; Development Agreement: $7,500 multiplied by number of Cafes yet to be developed |
| Renewal Fee | 50% of our then-current standard initial franchise fee |
| Technology Fee | $400 Monthly |
| Audit Fee | Reimbursement of costs if audit discloses understatement of 2% or more of Gross Sales |
| Audit and Inspection Costs | Amount understated by you, plus interest (if understatement is 2% or more of Gross Sales, you reimburse costs) |
| Collection Costs and Expenses | Our costs and expenses |
| Costs and Attorneys’ Fees | Our costs and expenses |
| Crisis Management | Our costs and expenses |
| Indemnification | The losses and expenses incurred by us and our affiliates |
| Interest and Late Charge | Interest: 18% per annum or the maximum rate permitted by law, whichever is less; Late Charge: $500 for each delinquent payment |
| Technology Support Services | Currently, $150/hour |
| New Product and Supplier Testing | Our reasonable costs of reviewing the application and inspecting the proposed supplier’s facilities, equipment and food products and all product testing costs paid by us to third parties |
| Non-Cash Payment Systems | All costs incurred by us associated with non-cash payment systems as they relate to the Franchised Cafe |
| Online Ordering Fee (Catering and Counter) | Currently, $147 Monthly |
| Quality Control Programs | If implemented, your proportionate share, as determined by us in our sole discretion, of the costs of the program |
| Post-Opening Assistance | Our fees and charges we may establish. Currently, our weekly fees range from $5,000 to $10,000. |
| Reimbursement of Insurance Costs | Our out-of-pocket costs of obtaining coverage on your behalf |
| Reimbursement of Required Maintenance Expenses | Cost of those expenses and cost of coordinating those repairs |
| Relocation | All reasonable charges actually incurred by us in consideration of your relocation request |
| Taxes | Actual tax amounts imposed on us |
| Temporary Management Personnel Fees | Salaries (including the cost of fringe benefits, which equal 20% of salaries), meals, lodging, other living expenses and transportation of our personnel (double after 60 days) |
| Temporary Operation Fees | 5% of Gross Sales plus the salaries (including the cost of fringe benefits, which equal 20% of salaries), meals, lodging, other living expenses and transportation of our personnel |
| Training - Additional | Tuition charge as established by us periodically |
| Training – Learning Management System | Monthly fees for a Learning Management System, at a current rate of $40 per month |
| Training - Opening Team of Trainers | Our then-current rate for trainers. Currently, our weekly fees range from $4,000 to $5,300. |
| Travel Expenses of Our Team Members | The cost of changing our travel arrangements |
| Website Fee | Currently, we do not charge a fee for developing, reviewing, approving and/or hosting customized content specific to a Franchised Cafe on any domain name(s) owned by us, but we reserve the right to do so. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 5 weeks for Controlling Principals, up to 15 weeks for Operating Partners and Multi-Unit Managers, up to 11 weeks for General Managers and Managers, and up to 10 weeks for Shift Supervisors. |
| Classroom Training | Varies by role: 53 hours for Operating Partner & Multi-Unit Manager and Controlling Principal; 8 hours for Shift Supervisor and Manager/General Manager. |
| On-the-Job Training | Varies by role: 530 hours for Operating Partner & Multi-Unit Manager; 140 hours for Controlling Principal; 350 hours for Shift Supervisor; 410 hours for Manager/General Manager. |
| Training Location | Our Corporate Headquarters in Dallas, Texas, or other approved regional area; and/or a Cafe operated by us or our affiliates in Dallas, Texas. |
| Additional Training | Franchisor has the right to require additional in-person and eLearning training courses for Required Trainees at any time. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area (Franchise Agreement), Development Area (Development Agreement) |
| Exclusive Territory | No |
| Territory Size | Typically a radius of one quarter of a mile to three miles around the Franchised Location for a Protected Area. Development Areas vary from a portion of a metropolitan area to a county or state. |
| Description | Under the Franchise Agreement, a franchisee receives a Protected Area, typically a 0.25 to 3-mile radius around the Cafe, where the franchisor will not operate or license other Corner Bakery Cafes, subject to certain exceptions for non-traditional venues and other distribution channels. For a Development Agreement, a larger Development Area is mutually agreed upon, with similar restrictions and reserved rights for the franchisor. Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by the franchisor. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years from the date the Franchised Cafe opens |
| Renewal Term | Two renewal terms of 10 years each |
| Renewal Fee | 50% of our then-current standard initial franchise fee |
| Renewal Conditions | Pay renewal fee; give timely notice (6-12 months prior); remodel Cafe as required; no default under agreements with franchisor/affiliates or related leases/financing/vendor agreements for 12 months prior to notice; have right to possession of location for renewal term; sign general release; comply with training requirements; sign then-current form of Renewal Franchise Agreement (which may have different terms). |
| Transfer Fee | Franchise Agreement: $3,500 plus costs; Development Agreement: $7,500 multiplied by number of Cafes yet to be developed. |
| Transfer Conditions | Requires franchisor's prior written consent. Conditions include: franchisee and principals/affiliates must be in compliance with all agreements; all monetary and outstanding obligations related to the Cafe must be satisfied; proposed transferee must meet current franchisee criteria, be approved by franchisor, and have owners of good character, reputation, and sufficient business/financial resources; transferee's key personnel must complete initial training; franchisee and guarantors must execute a general release; debt service must not jeopardize transferee's ability to operate; transferee must obtain possessory interest and all licenses; if franchisee finances sale, obligations to franchisee must be subordinate to obligations to franchisor; franchisee and principals must sign a non-competition covenant for two years within a 10-mile radius of any Cafe; and other documents as required by franchisor. |
| Termination for Cause | Franchisor may terminate upon default. Non-curable defaults include: failure to meet site acquisition or opening deadline; cessation of operations for more than three consecutive days (unless approved); insolvency/bankruptcy; unsatisfied judgment over $25,000 for 30+ days; material breach of covenants; unauthorized transfer; material misrepresentation or falsification of reports; imminent danger to public health/safety; loss of possession of location due to franchisee's fault; felony conviction or crime with adverse effect; misuse of Marks; failure of required trainees to complete training; assets blocked under terrorist activity laws; two consecutive failed inspections; three late reports in 12 months; failure to pay taxes/assessments; default under other agreements with franchisor/affiliates or related leases/contracts; failure to pay monies owed within 10 days of notice; or three or more defaults within any 12-month period. |
| Non-Compete Period | During the term of the franchise agreement and for two years after its expiration, termination, or an approved transfer. |
| Non-Compete Details | During the term, franchisee and principals may not directly or indirectly own, manage, engage in, be employed by, advise, make loans to, or have any other interest in any Competitive Business (casual dining/fast-casual selling artisan breads, salads, sandwiches, soups, baked goods, coffee, or similar method/trade dress, or franchising such businesses) at any location in the United States. After termination/expiration/transfer, for two years, they may not engage in a Competitive Business within the Protected Area and within 10 miles of any operating or under-development Cafe, or sell/transfer the location to a Competitive Business. Exceptions include existing operations identified in Appendix A and passive ownership of less than 5% of a publicly traded corporation. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | An approved Operating Partner must have full control over and devote best efforts to supervising day-to-day operations of the Franchised Cafe(s), holding at least a 10% equity interest (unless publicly-held), completing initial training, and residing within 100 miles of the Cafe. For more than three Cafes, a Multi-Unit Manager is required for every six Cafes, dedicating full time to supervision. The Cafe must always be under the on-site supervision of an Operating Partner, Multi-Unit Manager, or General Manager and a specified number of trained managers. |
| Required Suppliers | Franchisee must purchase proprietary products from franchisor or designated third-party licensees. Non-proprietary products must be purchased from approved suppliers or alternative approved suppliers. Franchisor is the only approved supplier for certain information technology services related to menu management. |
| Supply Restrictions | Franchisee must engage franchisor-approved architects, branding and signage vendors, project managers, and potentially general contractors. Specific hardware, software, equipment, accessories, and network connections for the Technology System are required. Participation in a mandatory supply chain management program is also required. |
| Franchisor Revenue from Suppliers | In 2023, the franchisor (Best Cafe - Franchises, LLC) did not receive any revenue from required franchisee purchases. Its affiliate, Best Cafe Enterprises, LLC, received $23,774 (0.03% of its total revenue of $78,184,427) from required franchisee purchases and leases, including rebates from suppliers/distributors and revenue from IT support services for menu management and house accounts. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any direct or indirect financing, and we do not guarantee your notes, leases, or obligations. |
Corner Bakery Cafe Franchise Earnings — Item 19
Corner Bakery Cafe 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.
Corner Bakery Cafe 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.
Corner Bakery Cafe System Growth
Corner Bakery Cafe currently operates 37 franchised locations and 67 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 9 | 155 |
| 2022 | 2 | 16 | 142 |
| 2023 | 0 | 37 | 104 |
Transfers: 1 | Closures: 62
State Registrations
Registered in 14 states: CA, NY, HI, ND, IL, RI, IN, SD, MD, VA, MI, WA, MN, WI
Corner Bakery Cafe Franchise — FAQ
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