Do you want to open a bakery cafe business by buying Corner Bakery franchise? If YES, here is how much it cost to open Corner Bakery franchise successfully. If you are looking towards opening a Corner Bakery Café Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

Corner Bakery Café was founded in 1991 and they began franchising in 2006, about 14 years ago. The current CEO is Mike Hislop and they have their corporate head office at 12700 Park Central Dr., #1300Dallas, TX 75251, Unites States. Corner Bakery Café also provides franchising opportunities and the company can boast of having over 70 franchise areas within the United States of America.

Corner Bakery Cafe franchise chain is the best-in-class catering platform, which serves pancakes, pasta, signature sandwiches, paninis. Corner Bakery franchise opportunities are aimed at the entrepreneurs looking for an experienced franchise team that will support every step of running the business. Here are areas where you are expected to spend money and the costs associated with it;

Financial Investment Required to Open a Corner Bakery Franchise

1. Initial Franchise Fee: $25,000

Please note that when you sign the Franchise Agreement, you will pay to Corner Bakery Cafe an initial franchise fee in the amount of $25,000 (the “Initial Franchise Fee”). The Initial Franchise Fee is fully earned by Corner Bakery Cafe when paid by you, and it is not refundable for any reason.

2. Development Fee: $10,000

For each Franchised Cafe that you agree to develop. When you sign the Development Agreement, you will pay a development fee in the amount of $10,000 for each Franchised Cafe that you agree to develop (the “Development Fee”).

Please note that the Development Fee is fully earned by Corner Bakery Cafe when paid by you, and it is not refundable in consideration of administrative and other expenses incurred by Corner Bakery Cafe and for the development opportunities lost or deferred as a result of the rights granted to you in the Development Agreement. In addition, the Development Fee is not credited against any other fees that you will pay to Corner Bakery Cafe.

3. Design Development Fee: $5,000 base price

Plus add-ons based on the complexity of the project. Once Corner Bakery Cafe has accepted your site and you have completed due diligence as required in the Manual, Corner Bakery Cafe will engage the services of an architect or planner to prepare a design plan (the “Design Development Plan”) for your Franchised Cafe.

The Design Development Plan will include a schematic space plan layout, and exterior elevations showing desired branding.

Please note that you must reimburse Corner Bakery Cafe for the cost of preparing the Design Development Plan according to the cost schedule set forth in the Manual, which currently includes a $5,000 base price plus add-ons based on the complexity of the project.

  1. Royalty Fee: 5 percent of Gross Sales and the Due Date for this fee is Weekly following the end of each Reporting Period by electronic funds transfer.

A “Reporting Period” is defined as a one-week period commencing on Monday and ending on Sunday, or another period that Corner Bakery Cafe designates periodically. Please note that Corner Bakery Cafe currently sweeps your account for the Royalty Fee and advertising contributions at the end of each of Corner Bakery Cafe’s 4- or 5-week fiscal periods throughout the year.

  1. National Marketing Fund Contribution: Currently, 0.75 percent of Gross Sales and the Due Date for this fee is Weekly with the Royalty Fee.

Your “Weekly Advertising Obligation” will not exceed 4.5 percent of Gross Sales, which will be allocated among the National Marketing Fund contribution, a Regional Marketing Fund contribution (if applicable), a Brand Development Fee (if charged), and local advertising and promotion (“Field Marketing”) expenditures approved by Corner Bakery Cafe.

Please note that Corner Bakery Cafe may change your Weekly Advertising Obligation or the allocation of it upon written notice to you. Currently, your Weekly Advertising Obligation is 1.75 percent of Gross Sales, including 0.75 percent that must be contributed to the National Marketing Fund and 1 percent that must be spent on Field Marketing.

Currently, Corner Bakery Cafe does not have any Regional Marketing Funds or collect any Brand Development Fee.

  1. Brand Development Fee: Amount determined by Corner Bakery Cafe if and when a Brand Development Fee is charged
  2. Regional Marketing Fund Contribution: Amount determined by Corner Bakery Cafe if and when each Regional Marketing Fund is established
  3. Audit and Inspection Costs: Amount understated by you, plus interest and the Due Date for this fee is Upon demand.

Please note that if an inspection or audit discloses an understatement in any report of 2 percent or more of Gross Sales for the audit period, you also must reimburse Corner Bakery Cafe for all costs and expenses connected with the inspection or audit.

  1. Collection Costs and Expenses: Corner Bakery Cafe’s costs and expenses and the Due Date for this fee is Upon demand, if required.
  2. Costs and Attorneys’ Fees: Corner Bakery Cafe’s costs and expenses and the Due Date for this fee is As incurred.

Please note that if Corner Bakery Cafe prevails in litigation regarding enforcement of the terms of the Development or Franchise Agreement or if Corner Bakery Cafe utilizes legal counsel as a result of your failure to comply with these agreements, you must pay Corner Bakery Cafe’s costs and expenses, including accountants’, attorneys’, attorneys’ assistants’, and expert witness fees, the cost of investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses.

  1. Crisis Management: Corner Bakery Cafe’s costs and expenses and the Due Date for this fee is Upon demand.

Please note that you must reimburse Corner Bakery Cafe for any costs and expenses that it incurs in responding to any crisis including food borne illness, fire or other casualty, robbery, violence, or other situations related to the Franchised Cafe.

  1. Damages for Employee Raiding: 3 times the annual salary of the person(s) involved and the Due Date for this fee is Upon demand.

Please note that this fee is Payable if you employ or seek to employ any person who is employed by Corner Bakery Cafe or any other Corner Bakery Cafe franchisee or developer, or otherwise induce that person to leave his / her employment.

  1. Indemnification: The losses and expenses incurred by Corner Bakery Cafe and its affiliates and the Due Date for this fee is As incurred.

Please note that you must defend, indemnify, and hold Corner Bakery Cafe and its affiliates harmless in all actions arising out of or resulting from the development or operation of your Franchised Cafe, excluding Corner Bakery Cafe’s gross negligence or willful misconduct.

  1. Interest and Late Charge Interest: 18 percent per annum or the maximum rate permitted by law, whichever is less; late charge: $500 for each delinquent payment

The Due Date for this fee is When any payment or report is not actually received by Corner Bakery Cafe on or before the due date.

  1. IT Services: $100 per 4- or 5-week fiscal period. You pay $100 per period, regardless of the number of Cafes you operate and the Due Date for this fee is Simultaneously with Royalty Fee payment.

Please note that this fee will increase by $60 per period for each additional pricing tier you have.

  1. New Product and Supplier Testing: Corner Bakery Cafe’s reasonable costs of reviewing the application and inspecting the proposed supplier’s facilities, equipment, and food products and all product testing costs paid by Corner Bakery Cafe to third parties

The Due Date for this fee is In advance of any review of the application.

  1. Non-Cash Payment Systems: All costs incurred by Corner Bakery Cafe associated with non-cash payment systems as they relate to the Franchised Café and the Due Date for this fee is As incurred.

Please note that you must accept debit cards, credit cards, stored value gift cards, or other non-cash payment systems that Corner Bakery Cafe specifies.

  1. Online Ordering Fee (Catering and Counter): Currently, $147 per 4- or 5-week fiscal period and the Due Date for this fee is Simultaneously with Royalty Fee payment.

Please note that Corner Bakery Cafe uses these fees to pay for the expenses charged by its online ordering vendor. These fees may change.

  1. Quality Control Programs: If implemented, your proportionate share, as determined by Corner Bakery Cafe in its sole discretion, of the costs of the program and the Due Date for this fee is As incurred.

Please note that if implemented, you must participate in any quality control programs that Corner Bakery Cafe, in its sole discretion, establishes, including a “mystery diner” program or any other consumer experience evaluation programs.

  1. Post-Opening Assistance: Corner Bakery Cafe’s fees and charges it may establish. Currently, its weekly fees range from $2,650 to $3,300 and the Due Date for this fee is As incurred.

Please note that at your request, Corner Bakery Cafe may provide special assistance at the Franchised Cafe for which you will be required to pay these charges.

  1. Reimbursement of Insurance Costs: Corner Bakery Cafe’s out-of-pocket costs of obtaining coverage on your behalf and the Due Date for this fee is Upon demand.

Please note that if you fail to obtain or maintain the required minimum insurance, Corner Bakery Cafe may obtain the insurance and charge its cost along with its out-of-pocket expenses and a reasonable service fee to you.

  1. Reimbursement of Required Maintenance Expenses: Cost of those expenses and cost of coordinating those repairs and the Due Date for this fee is Upon demand.

Please note that if, at any time, the general state of repair, appearance, or cleanliness of your Franchised Cafe, or its furnishings, fixtures, equipment, or signage, does not meet Corner Bakery Cafe’s standards, and you fail to correct that deficiency as Corner Bakery Cafe requires, it has the right, but not the obligation, to enter the Franchised Cafe and perform that maintenance at your expense.

  1. Relocation: All reasonable charges actually incurred by Corner Bakery Cafe in consideration of your relocation request and the Due Date for this fee is Upon demand, if required.

Please note that you may not relocate the Franchised Cafe without Corner Bakery Cafe’s prior written consent, which it may withhold in its sole discretion.

  1. Renewal Fee: 50 percent of Corner Bakery Cafe’s then-current standard Initial Franchise Fee and the Due Date for this fee is At the time you sign the renewal Franchise Agreement.

Please note that you must pay the renewal fee for each of your two renewal terms.

  1. Taxes: Actual tax amounts imposed on Corner Bakery Café and the Due Date for this fee is Immediately upon demand.

Please note that you must reimburse Corner Bakery Cafe for any sales tax, gross receipt tax, or similar tax (other than income tax) imposed on it for any payments to it required under the Franchise Agreement, unless the tax is credited against income tax otherwise payable by it.

  1. Technology Fee: Corner Bakery Cafe does not currently charge a Technology Fee and the Due Date for this fee is Simultaneously with payment of the Royalty Fee.

Please note that if implemented, you must pay a weekly Technology Fee for providing information technology support and access to Corner Bakery Cafe’s technology platforms, intranets, extranets, websites, and future services that Corner Bakery Cafe makes available to you as provided in the Manual.

  1. Temporary Management Personnel Fees: Salaries (including the cost of fringe benefits, which equal 20 percent of salaries), meals, lodging, other living expenses, and transportation of Corner Bakery Cafe’s personnel and the Due Date for this fee is As incurred.

Please note that if you, at any time, cease to employ three managers who have completed Corner Bakery Cafe’s Initial Training Program, Corner Bakery Cafe has the right to send its personnel to the Franchised Cafe to manage the Franchised Cafe until you hire replacement managers and they have completed the Initial Training Program.

After 60 days, you must pay double the salaries for Corner Bakery Cafe’s management personnel.

  1. Temporary Operation Fees: 5 percent of Gross Sales, plus the salaries (including the cost of fringe benefits, which equal 20 percent of salaries), meals, lodging, other living expenses, and transportation of Corner Bakery Cafe’s personnel and the Due Date for this fee is As incurred.

Please note that this is Payable if Corner Bakery Cafe temporarily assumes management of your Franchised Cafe because your Operating Partner is incapacitated, deceptive practices have been alleged, you have defaulted under the Agreement, or Corner Bakery Cafe is in the process of exercising its purchase right after the termination or expiration of the Agreement.

  1. Training – Additional: Tuition charge as established by Corner Bakery Cafe periodically and the Due Date for this fee is Upon demand.

Please note that Corner Bakery Cafe has the right to require certain of your employees as designated by it to attend training programs in addition to the Initial Training Program provided by it.

In addition to the tuition charge, you also will be required to pay all travel, living, and other expenses incurred by your employees while attending training.

  1. Training – Opening Team of Trainers: Corner Bakery Cafe’s then-current rate for trainers. Currently, Corner Bakery Cafe’s weekly fees range from $2,650 to $3,300 and the Due Date for this fee is Upon demand.

Please note that if you request an opening team of trainers for the fourth or any additional Franchised Cafe that you develop, you will be required to pay these charges.

  1. Travel Expenses of Corner Bakery Cafe’s Team Members: The cost of changing Corner Bakery Cafe’s travel arrangements and the Due Date for this fee is Upon demand.

Please note that if Corner Bakery Cafe makes travel arrangements for its personnel to visit your Franchised Cafe and you need to change the date, you must reimburse it for its costs and expenses in changing its travel arrangements.

  1. Transfer Fee – Development Agreement: $7,500 for each Franchised Cafe that remains to be developed under the Development Schedule. Franchise Agreement: $3,500 and the Due Date for this fee is Before consummation of transfer.

You also must pay Corner Bakery Cafe’s costs associated with evaluating the transfer including its outside counsel costs.

Please note that Transfers are subject to Corner Bakery Cafe’s prior written consent.

Corner Bakery Cafe does not charge a transfer fee for transfers of a minority percentage of your ownership interests; transfers following the death or disability of you, your Principals, or your Operating Partner; or, if you are a partnership, transfers to a corporation (or limited liability company) formed for convenience of ownership.

  1. Website Fee: Currently, Corner Bakery Cafe does 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 it, but it reserves the right to do so and the Due Date for this fee is As incurred.

Please note that you may not promote, offer, or sell any products or services or use any of the Marks, through the Internet or other future technological avenues, without Corner Bakery Cafe’s prior written consent, which it may withhold for any or no reason.

  1. Veteran Incentives: 10 percent off franchise fee; special training program for veteran employees
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Corner Bakery Cafe also has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial Investment: $843,000 – $2,378,000
  • Ongoing Initial Franchise Fee: $25,000 – $25,000
  • Ongoing Royalty Fee: 5 percent
  • Ad Royalty Fee: 2 percent
How Much Does It Cost to Open Corner Bakery Franchise?