When is the Royalty Fee due for a Corner Bakery Cafe franchise?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
," which is currently a calendar month. See Note 2. |
| Type of Fee(1) | Amount | Due Date(2) | Remarks |
|---|---|---|---|
| National Marketing Fund Contribution | Currently,1.25% of Gross Sales | Monthly, with the payment of the Royalty Fee | Your "Monthly Advertising Obligation" will not exceed 4.5% of Gross Sales, which will be allocated among, the National Marketing |
| Brand Development | Currently not | Monthly, if | Fund contribution, a Regional Marketing |
| Fee | assessed | implemented | Fund contribution (if applicable), a Brand |
| Regional Marketing Fund Contribution | Currently not assessed | Monthly, if established | Development Fee (if charged) and local advertising and promotion ("Field Marketing") expenditures approved by us. We may change your Monthly Advertising Obligation or the allocation of it upon written notice to you. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, the Royalty Fee is due monthly. Specifically, the Royalty Fee is due along with payments for the National Marketing Fund Contribution and Technology Fee.
Corner Bakery Cafe franchisees must participate in an electronic funds transfer program that allows Corner Bakery Cafe to directly withdraw funds from the franchisee's business checking account. Corner Bakery Cafe reviews sales numbers at the end of each reporting period, which is a calendar month. They then calculate the Royalty Fee and any marketing contributions and fees due.
Corner Bakery Cafe will then sweep these amounts directly from the franchisee's Electronic Depository Transfer Account (EDTA) on the 10th day of each month. The franchisee is responsible for all costs associated with establishing and maintaining the EDTA, including transaction and wire transfer fees. This means franchisees need to ensure sufficient funds are available in their account to cover these fees by the due date to avoid any penalties or disruptions.