How does Corner Bakery Cafe collect the Royalty Fee?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date(2) | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of Gross Sales(3) | 10th day of each month | We currently sweep your EDTA (as defined in Note 2 below) for the Royalty Fee advertising contributions, Technology Fee, and Online Ordering Fee at the end of each "Reporting Period," which is currently a calendar month. See Note 2. |
- (2) You must participate in our electronic funds transfer program authorizing us to utilize a pre-authorized bank draft system to sweep your business checking account ("Electronic Depository Transfer Account" or "EDTA") for any amounts owed to us under the Franchise Agreement and any other agreements with us.
You must sign and complete any banking forms that we require to authorize and direct your bank or financial institution to pay and deposit directly to our account, and to charge, the amount of the Royalty Fees, marketing fees and contributions, Technology Fee, Online Ordering Fee, and other amounts due and payable by you under the Franchise Agreement and any other agreements with us or our affiliates.
We have the right to sweep your account at any time; however, we will not sweep your account more than once a Reporting Period if you are not in default of the Franchise Agreement or any other agreements with us.
Currently, we review your sales numbers following the end of each Reporting Period, which is a calendar month, and we calculate the Royalty Fee and any marketing contributions and fees due under the Franchise Agreement and any other agreements with us or our affiliates and sweep those amounts directly from the EDTA on the 10th day of each month.
You must pay all costs and expenses of establishing and maintaining the EDTA, including transaction fees and wire transfer fees.
- (3) "Gross Sales" include all revenue from the sale of all services and products and all other income of every kind and nature (including stored value gift cards and gift certificates when redeemed but not when purchased, on-premise sales, off-premise sales, catering sales and any other type of sale, and delivery fees) related to the Franchised Cafe, whether for cash or credit and regardless of collection in the case of credit.
Gross Sales also includes all insurance proceeds you receive to replace revenue that you lose from the interruption of your Franchised Cafe due to a casualty or other event covered by business interruption or similar insurance coverage.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, the Royalty Fee, which is 5% of Gross Sales, is collected on the 10th day of each month. Corner Bakery Cafe uses an electronic funds transfer program to sweep the franchisee's business checking account, also known as the "Electronic Depository Transfer Account" or "EDTA", for the Royalty Fee and other fees. This sweep occurs at the end of each "Reporting Period," which is currently a calendar month.
Corner Bakery Cafe requires franchisees to participate in this electronic funds transfer program and to sign any necessary banking forms to authorize these direct payments. While Corner Bakery Cafe has the right to sweep the account at any time, they will not do so more than once a Reporting Period if the franchisee is not in default of the Franchise Agreement or any other agreements with them.
The franchisee is responsible for all costs associated with establishing and maintaining the EDTA, including transaction fees and wire transfer fees. Gross Sales, for royalty calculation purposes, include all revenue from the sale of services and products, including stored value gift cards when redeemed, on-premise and off-premise sales, catering sales, and delivery fees, whether for cash or credit. Gross Sales also includes all insurance proceeds received to replace revenue lost from business interruption due to a casualty or other event covered by insurance.