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How Much Does A Corner Bakery Café Franchise REALLY cost?
Bakery café chains have seen growth over the past few years that they can compete against food industry giants. One of the bakery café chains that is staying strong over the years is Corner Bakery Café. Now the question is, how much does a Corner Bakery Café franchise cost?
In this article, learn more about Corner Bakery Café and how much you need to invest when launching a new Corner Bakery Café franchise.
Corner Bakery Café Franchise and the Market
Chicago witnessed the humble beginnings of Corner Bakery Café in 1991. Firstly, it was Lettuce Entertain You Enterprises that established the growing restaurant chain. Then, it underwent several changes in ownership over the years. Presently, Roark Capital Group owns the bakery café chain. The headquarters is in Dallas, Texas, and at the helm is Frank Paci, the CEO.
It wasn’t until in 2006 that the Corner Bakery Café started franchising. So far, the bakery café chain’s most notable competitors are Panera Bread, Einstein Bros Bagels, and Au Bon Pain. At this point, there are over 180+ units in operation nationwide. It has locations in 21 states and the District of Columbia.
Corner Bakery Café serves breakfast, lunch, and dinner items. Plus, they have salads, sandwiches, baked goods, and soups as well.
Did You Know?
- The bakery café chain offers financing options from third-party partners to help a potential franchisee launch their store.
- Tripadvisor placed Corner Bakery Café as the Top Restaurant Chain in 2019.
- A franchisee will operate the franchise location for ten years.
- All franchises have a “Protected Area” with a range of one-quarter mile to three miles. Even so, it’s not exclusive. According to the Franchise Disclosure Document (FDD), you may still face competition from other franchisees nearby or other distribution channels.
- Corner Bakery Café also offers catering services.
How Much Does a Corner Bakery Café Franchise Cost?
The company estimates that you might have to pay an initial investment between $952,000 to $1,952,000. The estimated Corner Bakery Café Franchise cost includes the initial franchise fee ($25,000).
You might have to shell out an additional $10,000 for a Development Fee. Plus, another $5,000 with other add-ons, which are already part of the franchise cost. This may be waived depending on certain conditions.
Check out the tables below on the initial investment and other fees.
Your Investment
| Pre-Construction Costs | $25,000 | $144,000 |
| Construction Costs | $372,000 | $750,000 |
| Front of House Furniture, Fixtures & Equipment | $33,000 | $89,000 |
| Back of House Furniture, Fixtures & Equipment | $208,000 | $275,000 |
| Smallwares | $23,000 | $34,000 |
| Technology System | $34,000 | $50,000 |
| Catering Equipment | $40,000 | $40,000 |
| Real Property | Variable | Variable |
| Initial Franchise Fee | $25,000 | $25,000 |
| Grand Opening Marketing | $15,000 | $15,000 |
| Training | $40,000 | $100,000 |
| Inventory | $10,000 | $20,000 |
| Security Deposits | $2,000 | $10,000 |
| Additional Funds – 3 Months | $125,000 | $400,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT (does not include real estate costs) | $952,000 | $1,952,000 |
Other Costs
| Royalty Fee | 5% of Gross Sales. |
| Brand Development Fee | Amount determined by CBC if and when a Brand Development Fee is charged. |
| National Marketing Fund | Currently, 0.75% of Gross Sales. |
| Regional Marketing Funds | Amount determined by the franchisor if and when each Regional Marketing Fund is established |
| Audit and inspection Costs | Amount understated by the franchisee, plus interest. |
| Collection Costs and Expenses | Franchisor’s costs and expenses |
| Costs and Attorneys’ Fees | Franchisor’s costs and expenses. |
| Crisis Management | Franchisor’s costs and expenses. |
| Damages for Employee Raiding | 3 times the annual salary of the person(s) involved. |
| Indemnification | The losses and expenses incurred by the franchisor and its 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 |
| IT Services | $100 per 4- or 5-week fiscal period. Franchisees pay $100 for all Corner Bakery Cafes they operate, regardless of the number of Cafes they operate. |
| New Product and Supplier Testing | The franchisor’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 the franchisor to third parties. |
| Non-Cash Payment Systems | All costs incurred by the franchisor associated with non-cash payment systems as they relate to the Franchised Café. |
| Online Ordering Fee (Catering and Counter) | Currently, $147 per 4- or 5-week fiscal period |
| Quality Control Programs | If Implemented, the franchisee’s proportionate share, as determined by the franchisor in its sole discretion, of the costs of the program. |
| Post-Opening Assistance | The franchisor’s fees and charges it may establish. Currently, the weekly fees range from $2,650 to $3,300. |
| Reimbursement of insurance Costs | Franchisor’s out-of-pocket costs of obtaining coverage on the franchisee’s behalf. |
| Reimbursement of Required Maintenance Expenses | Cost of those expenses and cost of coordinating those repairs. |
| Relocation | All reasonable charges actually incurred by the franchisor in consideration of the franchisee’s relocation request. |
| Renewal Fee | 50% of the then-current standard initial franchise fee. |
| Taxes | Actual tax amounts imposed on the franchisor |
| Technology Fee | Currently not charged. |
| Temporary Management Personnel Fees | Salaries (including the cost of fringe benefits, which equal 20% of salaries), meals, lodging, other living expenses and transportation of the franchisor’s personnel |
| 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 the franchisor’s personnel |
| Training – Additional | Tuition charge as established by the franchisor periodically. |
| Training – Opening Team of Trainers | The franchisor’s then-current rate for trainers. Currently, the weekly fees range from $2,650 to $3,300. |
| Travel Expenses of the Franchisor’s Team Members | The cost of changing travel arrangements. |
| Transfer Fee | Development Agreement: $7,500 for each Franchised Cafe that remains to be developed under the Development Schedule Franchise Agreement: $3,500 |
| Web Site Fee | Currently, the franchisor does not charge a fee for developing, reviewing, approving and/or hosting customized content specific to a Franchised Café on any domain name(s) owned by the franchisor, but the franchisor reserves the right to do so. |
How Do I Start a Corner Bakery Café Franchise?
Now you know an estimated Corner Bakery Café Franchise cost, start the process by going on their website.
On the Corner Bakery Café website, setting up your Corner Bakery Café franchise takes only five steps. The first is the Application. Here, you need to fill in an application form on their website.
Click here to fill out an application form.
Once submitted, you’ll discuss a business plan and undergo a financial overview. This will be subject to approval, and it would lead to the grand opening of a new Corner Bakery Café location.
Interested in reading more about franchise opportunities? Read more here at Franchise How!