What is an 'Occupancy Notice' in the context of a Corner Bakery Cafe franchise?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.8.2 Occupancy Notice. You shall notify us in writing of the date you expect a certificate of occupancy to be issued for the Franchised Cafe (an "Occupancy Notice") at least 40 days prior to the date you expect construction and/or renovation to be completed and a certificate of occupancy to be issued for the Franchised Cafe.
After our receipt of the Occupancy Notice, we reserve the right to conduct a final inspection of the Franchised Cafe to determine if you have complied with this Agreement in connection with the development of the Franchised Cafe including, without limitation, the final Schematic Plan, Branding Plan, and Plans and Specifications.
We shall not be liable for delays or loss occasioned by our inability to complete our investigation and to make a determination within this 40-day period.
If requested by us, you shall submit a copy of the certificate of occupancy to us.
If we make travel arrangements for our personnel to conduct the final inspection of the Franchised Cafe prior to opening and you need to extend the inspection date, you must reimburse us for any costs and expenses that we incur in changing our travel arrangements.
- 3.9 Opening of the Franchised Cafe. You shall not open the Franchised Cafe for business without our express written authorization, which will not be granted unless you have satisfied the conditions contained in this Section 3.9.
You may not open the Franchised Cafe for at least 24 days after the date construction is completed so that your employees may be trained in the management and operation of the Franchised Cafe.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Corner Bakery Cafe Franchise Disclosure Document, an "Occupancy Notice" is a written notification that a franchisee must provide to Corner Bakery Cafe. This notice informs Corner Bakery Cafe of the date the franchisee anticipates receiving a certificate of occupancy for their franchised cafe. The franchisee must provide this notice at least 40 days before the expected completion of construction or renovation and the issuance of the certificate of occupancy.
Upon receiving the Occupancy Notice, Corner Bakery Cafe reserves the right to conduct a final inspection of the franchised cafe. This inspection is to ensure that the franchisee has complied with the franchise agreement regarding the development of the cafe, including adherence to the final Schematic Plan, Branding Plan, and Plans and Specifications. However, Corner Bakery Cafe is not liable for any delays or losses resulting from their inability to complete the investigation and make a determination within the 40-day period.
Furthermore, if Corner Bakery Cafe makes travel arrangements for its personnel to conduct the final inspection and the franchisee needs to extend the inspection date, the franchisee is responsible for reimbursing Corner Bakery Cafe for any costs incurred in changing the travel arrangements. Additionally, Corner Bakery Cafe may request a copy of the certificate of occupancy from the franchisee. The franchisee cannot open the Corner Bakery Cafe for business without Corner Bakery Cafe's express written authorization, which will only be granted once the conditions outlined in Section 3.9 of the franchise agreement have been met. The franchisee must also allow at least 24 days after construction is completed for employee training before opening the cafe.