Does Corner Bakery Cafe have an option to purchase my business?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
20.1 Scope. Upon the expiration or termination of this Agreement for any reason, we will have the option to purchase from you some or all of the assets used in the Franchised Cafe ("Assets"). We may exercise our option by giving written notice to you within 90 days following the effective date of the expiration or termination or the date you cease to operate the Franchised Cafe. As used in this Section 20, "Assets" shall mean and include, without limitation, leasehold improvements, Operating Assets, and inventory (non-perishable products, materials and supplies) used in the Franchised Cafe, and the real estate fee simple or the Lease for the Franchised Location. The purchased Assets shall exclude any items that are required to be returned or delivered to us under Section 19 (Obligations on Termination or
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to the 2025 Corner Bakery Cafe Franchise Disclosure Document, Corner Bakery Cafe does have the option to purchase a franchisee's assets upon the expiration or termination of the franchise agreement. This option allows Corner Bakery Cafe to buy some or all of the assets used in the franchised cafe.
The assets Corner Bakery Cafe may purchase include leasehold improvements, operating assets, inventory (specifically non-perishable products, materials, and supplies), and the real estate or lease for the franchised location. However, this excludes any items that the franchisee is required to return or deliver to Corner Bakery Cafe upon termination or expiration of the agreement.
Corner Bakery Cafe must provide written notice to the franchisee within 90 days following the effective date of the expiration or termination, or from the date the franchisee ceases to operate the franchised cafe, to exercise this purchase option. This clause ensures that Corner Bakery Cafe has the opportunity to maintain control over strategic locations and assets within its franchise network, while also providing a potential exit strategy for franchisees under certain circumstances.