What were the total operating expenses for Corner Bakery Cafe in 2024?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
Total liabilities and member equity | $ | 6,465,020 | $ | 6,444,201 |
Statement of Operations For the Reporting Periods ended December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Revenues: | ||
| Franchise royalty fees, net | $ 3,194,479 | $ 1,854,746 |
| Advertising fund fees | 1,538,326 | 893,409 |
| Other franchise fees | 151,851 | 33,117 |
| Total revenues | 4,884,656 | 2,781,272 |
| Expenses: | ||
| Selling, general and administrative expenses | 1,046,864 | 213,555 |
| Advertising fund expenses | 1,011,347 | 893,409 |
| Management fees | 1,637,548 | 944,460 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, the total operating expenses for the company in 2024 were $4,738,031. This figure is derived from the company-owned stores and reflects the costs associated with running the Corner Bakery Cafe franchise system. In comparison, the total operating expenses in 2023 were $2,750,687, indicating a significant increase in operating costs year over year.
Breaking down the operating expenses, the FDD reveals several components. Selling, general, and administrative expenses amounted to $1,046,864 in 2024, compared to $213,555 in 2023. Advertising fund expenses were $1,011,347 in 2024, matching closely with the $893,409 in 2023. Management fees totaled $1,637,548 in 2024, a notable increase from $944,460 in 2023. Amortization expense was $1,042,272 in 2024, also higher than the $699,263 in 2023.
For a prospective franchisee, understanding these operating expenses is crucial. While these figures pertain to the franchisor's operations, they provide insight into the types and scale of expenses a franchisee might encounter. Categories like selling, general, and administrative expenses, advertising, and management fees are common in franchise systems. The amortization expense may relate to the depreciation of assets, which could also be relevant for franchisees as they invest in equipment and property.
It's important to note that these expenses are specific to the franchisor's operations and may not directly translate to the costs a franchisee will incur. Factors such as location, store size, and local market conditions can significantly impact a franchisee's operating expenses. Therefore, while this data offers a valuable benchmark, prospective franchisees should conduct their own thorough financial analysis and due diligence to estimate their potential expenses accurately.