Can a Corner Bakery Cafe developer have any interest in a Competitive Business?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
The market for restaurant bakery services is well-established. You will compete with a variety of restaurants, bakeries, and caterers. The restaurant and bakery business is highly competitive based on price, service, restaurant location and food quality and is subject to fluctuations in consumer tastes, economic conditions, population and traffic patterns.
As explained in Item 1, our affiliate, On Smile LLC, offers franchises for Cici's restaurants. Cici's restaurants specialize in pizza and other foods and operate either as dine-in buffet style restaurants or carry-out restaurants. The principal business address of On Smile LLC is the same as ours. Corner Bakery Cafes and Cici's restaurants currently offer significantly different menu items but they do offer some similar goods and they may offer similar goods or services in the future. There may be now or in the future Cici's restaurants located in the same market as current and future Corner Bakery Cafes. These Cici's restaurants could be company-owned, franchised or both. If there is a conflict between you and us caused by a Cici's restaurant or between a Corner Bakery Cafe franchisee and a Cici's restaurant franchisee, our management team will attempt to resolve the conflict after taking into account the specific facts of each situation and what is in the best interests of the affected system or systems. However, we are not responsible for resolving conflicts between or among Corner Bakery Cafe franchisees, or between or among a Corner Bakery Cafe franchisee and a Cici's franchisee.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
Based on the 2025 Corner Bakery Cafe Franchise Disclosure Document, it is not explicitly stated whether a developer can have an interest in a competitive business. However, the document does state that franchisees will face competition from other restaurants, bakeries, and caterers. The restaurant and bakery business is highly competitive based on price, service, restaurant location, and food quality and is subject to fluctuations in consumer tastes, economic conditions, population, and traffic patterns.
Item 12 notes that Corner Bakery Cafe's affiliate, On Smile LLC, offers franchises for Cici's restaurants. While Corner Bakery Cafes and Cici's restaurants currently offer significantly different menu items, they do offer some similar goods and they may offer similar goods or services in the future. There may be now or in the future Cici's restaurants located in the same market as current and future Corner Bakery Cafes. These Cici's restaurants could be company-owned, franchised, or both. If there is a conflict between you and us caused by a Cici's restaurant or between a Corner Bakery Cafe franchisee and a Cici's restaurant franchisee, our management team will attempt to resolve the conflict after taking into account the specific facts of each situation and what is in the best interests of the affected system or systems. However, Corner Bakery Cafe is not responsible for resolving conflicts between or among Corner Bakery Cafe franchisees, or between or among a Corner Bakery Cafe franchisee and a Cici's franchisee.
To fully understand Corner Bakery Cafe's policy on franchisee involvement with competitive businesses, prospective franchisees should directly ask the franchisor about any restrictions or required disclosures regarding ownership or investment in competing businesses, either during the franchise term or after.