Can Corner Bakery Cafe change the Monthly Advertising Obligation?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date(2) | Remarks |
|---|---|---|---|
| National Marketing Fund Contribution | Currently,1.25% of Gross Sales | Monthly, with the payment of the Royalty Fee | Your "Monthly Advertising Obligation" will not exceed 4.5% of Gross Sales, which will be allocated among, the National Marketing |
| Brand Development | Currently not | Monthly, if | Fund contribution, a Regional Marketing |
| Fee | assessed | implemented | Fund contribution (if applicable), a Brand |
| Regional Marketing Fund Contribution | Currently not assessed | Monthly, if established | Development Fee (if charged) and local advertising and promotion ("Field Marketing") expenditures approved by us. We may change your Monthly Advertising Obligation or the allocation of it upon written notice to you. Currently, your Monthly Advertising Obligation is 2.25% of Gross Sales, including 1.25% that must be contributed to the National Marketing Fund and 1% that must be spent on Field Marketing. Currently, we do not have any Regional Marketing Funds or collect any Brand Development Fee. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, Corner Bakery Cafe has the right to change the Monthly Advertising Obligation with written notice to the franchisee. Currently, the Monthly Advertising Obligation is 2.25% of Gross Sales. This amount includes 1.25% that must be contributed to the National Marketing Fund and 1% that must be spent on Field Marketing.
The Monthly Advertising Obligation will not exceed 4.5% of Gross Sales. This obligation is 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.
Currently, Corner Bakery Cafe does not have any Regional Marketing Funds or collect any Brand Development Fee. This means that the 2.25% of Gross Sales is the current total advertising obligation, but Corner Bakery Cafe can modify this with written notice, as long as it does not exceed the 4.5% maximum.