What is the Technology Fee 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. Currently, your Monthly Advertising Obligation is 2.25% of Gross Sales, including 1.25% that must be contributed to the National Marketing Fund and 1% that must be spent on Field Marketing. Currently, we do not have any Regional Marketing Funds or collect any Brand Development Fee. |
| Technology Fee | $400 | Monthly, with payment of the Royalty Fee | You must pay a monthly Technology Fee for providing information technology support and access to our technology platforms, intranets, extranets, websites and future services that we make available to you as provided in the Manual. See Item 11. |
| Audit and Inspection Costs | Actual amount understated by you, plus interest | Upon demand | If an inspection or audit discloses an under statement in any report of 2% or more of Gross Sales for the audit period, you also must reimburse us for all actual costs and expenses connected with the inspection or audit. |
| Collection Costs and Expenses | Our costs and expenses | Upon demand | These costs and expenses include, but are not limited to, costs and commissions due a collection agency, reasonable attorneys' fees, costs incurred in creating or replicating reports demonstrating Gross Sales of the Franchised Cafe, court costs, expert witness fees, discovery costs and reasonable attorneys' fees and costs on appeal, together with interest charges on all of the above. |
| Costs and Attorneys' Fees | Our costs and expenses | As incurred | If we prevail in litigation regarding enforcement of the terms of the Development or Franchise Agreement or if we utilize legal counsel as a result of your failure to comply with these agreements, you must pay our costs and expenses, including accountants', attorneys', attorneys' assistants' and expert witness fees, the cost of investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, franchisees must pay a Technology Fee of $400 per month. This fee is due along with the Royalty Fee. Corner Bakery Cafe uses this fee to provide information technology support and access to their technology platforms, including intranets, extranets, and websites. The FDD states that future services may also be included. Item 11 provides additional information regarding the technology platforms.
Corner Bakery Cafe requires franchisees to participate in an electronic funds transfer program to pay the Technology Fee, Royalty Fees, marketing fees, and other amounts owed to the company. Franchisees must authorize Corner Bakery Cafe to sweep their business checking account for these fees. While Corner Bakery Cafe has the right to sweep the account at any time, they will not do so more than once per reporting period, which is a calendar month, if the franchisee is not in default of the Franchise Agreement.
Franchisees are responsible for all costs associated with establishing and maintaining the Electronic Depository Transfer Account (EDTA), including transaction and wire transfer fees. It is important for prospective franchisees to factor this monthly technology fee into their operating budget, as it is a recurring expense that contributes to the overall cost of running a Corner Bakery Cafe franchise.