What fees are swept from the EDTA for a Corner Bakery Cafe franchise?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, franchisees are required to participate in an electronic funds transfer program that allows Corner Bakery Cafe to sweep funds from the franchisee's Electronic Depository Transfer Account (EDTA). This sweep covers amounts owed to Corner Bakery Cafe under the Franchise Agreement and any other agreements. Corner Bakery Cafe has the right to sweep the account at any time, but generally does so no more than once per reporting period, assuming the franchisee is not in default. The franchisee is responsible for all costs associated with establishing and maintaining the EDTA.
Specifically, Corner Bakery Cafe sweeps the EDTA for Royalty Fees, marketing fees and contributions, Technology Fee, and Online Ordering Fee. These sweeps occur after the end of each reporting period, which is currently a calendar month. Corner Bakery Cafe reviews the franchisee's sales numbers and calculates the fees due, then sweeps those amounts from the EDTA on the 10th day of each month.
This mandatory electronic funds transfer system ensures that Corner Bakery Cafe receives timely payments of fees. For a prospective franchisee, this means maintaining sufficient funds in the EDTA to cover these fees and understanding the monthly sweep schedule. Failure to maintain adequate funds could result in default under the Franchise Agreement. Franchisees should also factor in the costs of maintaining the EDTA account when assessing the overall financial investment required for a Corner Bakery Cafe franchise.