How often can Corner Bakery Cafe Sweep the EDTA of a franchisee?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.1.3 De-identification. If we do not exercise our option to purchase the Assets of the Franchised Cafe pursuant to Section 20 (Option to Purchase), you shall, at your own cost, immediately deidentify (and make non-structural changes to) the Franchised Cafe (including the building shell and its interior) to distinguish the appearance of the Franchised Cafe from a Corner Bakery Cafe, including, removing the signs, the Marks, and any trade dress so as to indicate to the public that you are no longer
associated with us and make any other changes we deem necessary, in our sole discretion, for such purposes. In the event you fail or refuse to comply with the requirements of this Section 19.1.3, we shall have the right to enter the Franchised Cafe, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required under this Section 19.1.3, at your expense, which expense you agree to pay upon demand.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Corner Bakery Cafe outlines the obligations of the franchisee upon termination or expiration of the franchise agreement. Specifically, if Corner Bakery Cafe does not exercise its option to purchase the assets of the franchised cafe, the franchisee is obligated to 'de-identify' the location at their own cost. This includes removing signs, marks, and trade dress to clearly distinguish the location from a Corner Bakery Cafe. The de-identification should indicate to the public that the location is no longer associated with the Corner Bakery Cafe brand.
According to the FDD, if a franchisee fails or refuses to comply with the de-identification requirements, Corner Bakery Cafe has the right to enter the franchised cafe and make the necessary changes at the franchisee's expense. The franchisee agrees to pay these expenses upon demand. This ensures that the brand's image and identity are protected even after a franchise agreement ends.
The term "EDTA" is not defined in the provided documentation, but based on common usage, it likely refers to an account where electronic payments are deposited. The FDD excerpt does not specify how often Corner Bakery Cafe can sweep the EDTA of a franchisee. A prospective franchisee should seek clarification from the franchisor regarding the specific circumstances and frequency with which Corner Bakery Cafe can sweep the EDTA, as well as the procedures and notifications involved.