What is deferred for Corner Bakery Cafe franchisees in Washington State?

According to the 2025 Corner Bakery Cafe Franchise Disclosure Document, an addendum to the franchise agreement is required for Washington franchisees. Due to a financial condition imposed by the State of Washington, Corner Bakery Cafe defers the payment of the initial franchise fee for franchisees in Washington until the franchised cafe opens for business. Upon the opening of the Corner Bakery Cafe, the franchisee must pay the initial franchise fee.

This deferral of the initial franchise fee can be a significant benefit for new Corner Bakery Cafe franchisees in Washington, as it reduces the upfront investment required to start the business. This allows the franchisee to allocate those funds to other essential startup costs, such as build-out, equipment, and initial marketing efforts. It also provides a cushion to manage cash flow during the initial months of operation, when revenue may be lower.

However, it's important to note that the fee is only deferred, not waived. Franchisees should be prepared to pay the full initial franchise fee once the Corner Bakery Cafe opens. Additionally, Washington franchisees should be aware of other stipulations in the addendum, including the prevalence of the Washington Franchise Investment Protection Act in case of conflict of laws, the Franchisee Bill of Rights (RCW 19.100.180), and the site of arbitration, mediation, and/or litigation.