What agreements must a Corner Bakery Cafe franchisee not be in default of to open?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2.21 You default three or more times within any 12-month period, whether or not the defaults are similar and whether or not they are cured.
18.3 Our Remedies After An Event of Default.
- 18.3.1 Right to Terminate. If an Event of Default occurs, we may, at our sole election and without notice or demand of any kind, declare this Agreement and any and all other rights granted under this Agreement to be immediately terminated and, except as otherwise provided herein, of no further force or effect.
Upon termination, you will not be relieved of any of your obligations, debts, or liabilities under this Agreement, including without limitation any debts, obligations, or liabilities that you accrued prior to such termination.
18.3.2 Other Remedies. If an Event of Default occurs, we may, at our sole election and upon delivery of written notice to you, take any or all of the following actions without terminating this Agreement:
18.3.2.1. temporarily or permanently reduce the size of the Protected Area, in which event the restrictions on us and our affiliates under Section 1.2.1 (Protected Area) will not apply in the geographic area that was removed from the Territory;
18.3.2.2. temporarily remove information concerning the Franchised Cafe from the Corner Bakery Cafe website and/or stop your or the Franchised Cafe's participation in any other programs or benefits offered on or through website;
18.3.2.3. suspend your right to participate in one or more programs or benefits that any of the Funds provide;
18.3.2.4. suspend any other services that we or our affiliate provides to you under this Agreement or any other agreement or suspend our performance of, or compliance with, any of our obligations to you under this Agreement or other agreements;
18.3.2.5. suspend or terminate any temporary or permanent fee reductions to which we might have agreed (whether as a policy, in an amendment to this Agreement, or otherwise);
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, a Corner Bakery Cafe franchisee must not default three or more times within any 12-month period to remain in good standing. These defaults can be similar or dissimilar and whether or not they are cured is irrelevant.
If a franchisee defaults, Corner Bakery Cafe has the right to terminate the Franchise Agreement without prior notice. Upon termination, the franchisee remains responsible for all outstanding obligations and liabilities, including those accrued before the termination date.
Corner Bakery Cafe also has the option to take actions without terminating the agreement, such as reducing the Protected Area, removing the Franchised Cafe's information from the Corner Bakery Cafe website, suspending participation in programs, suspending services, or terminating fee reductions.