Who must Corner Bakery Cafe franchisees designate as their Operating Partner?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.7 Operating Partner. You must designate an individual whom we have approved to serve as your "Operating Partner." The Operating Partner as of the date of this Agreement is identified in Appendix B. The Operating Partner will be the person with whom we communicate as to operational matters
and must have the authority to bind you with respect to all operational decisions relating to the Franchised Cafe. The Operating Partner must be a Principal, unless you were a publicly held Entity or a wholly owned subsidiary of a publicly held Entity as of the date of the first franchise-related agreement between you and us. The Operating Partner must have full control over and devote his or her best efforts to supervising the day-to-day operation of the Franchised Cafe and all other franchised Cafes that you operate (unless you have named and we have approved a Multi-Unit Manager) and must maintain a primary residence within a 100-mile radius of the Franchised Cafe. The Operating Partner shall not, without our prior written approval, engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with your obligations under this Agreement. You agree to provide us with an executed copy of any arrangement, agreement or contract, and all amendments thereto, between you and your Operating Partner related to the operation of the Franchised Cafe. If the Operating Partner no longer qualifies as such, you must designate, and obtain our written approval of, another qualified person to act as the Operating Partner within 30 days after the date the prior Operating Partner ceases to be qualified.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, franchisees must designate an individual approved by Corner Bakery Cafe to serve as their Operating Partner. The Operating Partner is the main point of contact for operational matters. The identity of the Operating Partner is documented in Appendix B of the franchise agreement as of the agreement date.
The Operating Partner must have the authority to make binding operational decisions for the franchised cafe. Unless the franchisee is a publicly held entity or a wholly-owned subsidiary of one, the Operating Partner must be a Principal. The Operating Partner is expected to fully control and dedicate their best efforts to the cafe's day-to-day operations, as well as any other Corner Bakery Cafe franchises the franchisee operates, unless a Multi-Unit Manager has been approved. The Operating Partner must also live within a 100-mile radius of the franchised cafe.
The Operating Partner cannot be involved in other business activities that demand significant management responsibility, time, or conflict with the franchisee's obligations without prior written approval from Corner Bakery Cafe. Franchisees must provide Corner Bakery Cafe with a copy of any agreements between them and their Operating Partner related to the cafe's operation. If the Operating Partner becomes unqualified, the franchisee has 30 days to designate and secure Corner Bakery Cafe's approval of a replacement.