Corner Bakery Cafe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,090,000 - $2,335,000
Franchise Fee
$40,000
Min Cash Required
$150,000
Total US Locations
99
Business Summary
Corner Bakery Cafe operates fast-casual restaurants that offer a diverse menu for breakfast, lunch, and dinner, focusing on artisan breads, salads, sandwiches, soups, and baked goods. These cafes provide a casual atmosphere for guests and are known for their catering services, which offer fresh food packaged for delivery or pick-up. Customers can also use online ordering for both take-out and catering.
Corporate History
Best Cafe – Franchises, LLC was formed in Delaware on May 9, 2023, with the sole purpose of offering, selling, and servicing Corner Bakery Cafe franchises. The company began offering these franchises on May 22, 2024. Prior to this, the Corner Bakery Cafe brand was operated by its predecessor, CBC Restaurant Corp., which ran company-owned cafes and offered franchises from 2006 until June 2023, when Best Cafe – Franchises, LLC's affiliate acquired the brand.
Financial Overview
Investment Range
$1,090,000 - $2,335,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$150,000
Royalty %
5%
Marketing %
2.25%
Equipment Costs (Low)
$801,000
Equipment Costs (High)
$1,536,000
Working Capital
$300,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Best Cafe – Franchises, LLC has negative member equity and has incurred net losses in both 2023 and 2024, with net cash used in operating activities during these periods. The franchisor's financial condition, as noted in the FDD's Special Risks section, calls into question its ability to provide services and support to franchisees. A significant portion of its assets consists of receivables from related parties.
Financing Details
Best Cafe – Franchises, LLC does not offer any direct or indirect financing to its franchisees, nor does it guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
99
Franchised Units
32
Corporate Units
67
Avg Square Footage
3,400
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
3
Litigation Summary
Corner Bakery Cafe has a disclosed legal history including one pending action and two prior actions against its predecessor. The pending lawsuit, filed in December 2024, is against an affiliate and a Vice President of Franchise Development, alleging fraud, misrepresentation, breach of contract, and conspiracy related to obtaining a liquor license for a Voodoo restaurant business. The two prior cases against Corner Bakery Cafe's predecessor, CBC Restaurant Corp., include a 2013 qui tam action regarding the failure to report and remit money for unused gift cards to the State of Delaware, which was settled in 2018 for $700,000. The other prior case, filed in 2014, involved allegations of unauthorized, false, and misleading financial performance representations, as well as failure to provide effective operational assistance, which was settled in 2015 with CBC paying $974,498.52.
Bankruptcy History
Best Cafe – Franchises, LLC has a bankruptcy history involving its predecessor and current/former affiliates. In March 2023, Corner Bakery Cafe's predecessor, CBC Restaurant Corp., along with Corner Bakery Holding Company and CBC Cardco, Inc., filed for Chapter 11 bankruptcy. The assets, including franchise agreements, were subsequently acquired by an affiliate of Best Cafe – Franchises, LLC. Additionally, some current and former affiliates of Best Cafe – Franchises, LLC, specifically Cici's Holdings, Inc. and related entities, filed for Chapter 11 bankruptcy in January 2021 and emerged in March 2021.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, Corner Bakery Cafe franchisees must provide written notice 6 to 12 months before the initial term ends. They must also agree to remodel their cafe to meet current brand standards within a specified timeframe (up to one year). Key conditions include being in full compliance with all agreements with Best Cafe – Franchises, LLC and its affiliates for the prior 12 months, having the right to possession of the location, executing a general release of claims against the franchisor, and complying with all current training requirements. Franchisees will also need to sign the franchisor's then-current renewal franchise agreement, which may contain substantially different terms and conditions, including regarding royalty fees and advertising obligations.
Training & Support Program
Franchisor Assistance
Best Cafe – Franchises, LLC provides extensive support to its franchisees. Before opening, it offers consultation on site selection, reviews and approves proposed sites and leases, and engages an architect for the Design Development Plan. The franchisor reviews and approves final construction plans and provides a construction orientation program. It also conducts a final inspection before granting authorization to open. Initial training programs are provided for the Controlling Principal, Operating Partner, Multi-Unit Manager, General Manager, and up to three Managers, covering various skills at corporate headquarters or company-owned cafes in Dallas, Texas. For the first two cafes, the franchisor provides an opening team of trainers. After opening, Corner Bakery Cafe manages and spends funds from the National Marketing Fund and any Regional Marketing Funds for advertising and promotions. It provides marketing guidelines, advises on system modifications (e.g., menu, equipment, décor), offers periodic consultation, inspects operations, and may provide special assistance upon request. The franchisor also offers information technology support, access to technology platforms, and mandatory sanitation and quality control programs.
Initial Training Hours
583
Training Location
Corporate headquarters in Dallas, Texas, or company-operated cafes in Dallas, Texas, or other approved regional areas.
Ongoing Support
After opening, Corner Bakery Cafe franchisees receive various forms of ongoing support. The franchisor collects and administers contributions to a National Marketing Fund (and potentially Regional Marketing Funds) for advertising, marketing, public relations, and research, providing guidelines for local marketing. It advises and consults on operational issues, system developments, and improvements in restaurant design, management, food preparation, sales promotion, and training through visits, online programs, and communications. The franchisor periodically inspects cafes for compliance and may offer special assistance for a fee. Franchisees are also required to participate in mandatory sanitation and food safety programs, including food safety audits, and quality control programs like 'mystery diner' evaluations. Technology support services and access to technology platforms are also provided monthly.
Franchise Requirements
Ideal Candidate Profile
Corner Bakery Cafe seeks franchisees who are strong leaders, financially capable, and committed to actively supervising day-to-day operations. Ideal candidates for single-unit ownership will designate an Operating Partner with full control over daily operations, who must reside within a 100-mile radius of the cafe and have at least a 10% equity interest. For multi-unit developers, a Multi-Unit Manager is required for every six cafes, dedicating full-time efforts to supervision. All key personnel, including the Controlling Principal, Operating Partner, Multi-Unit Manager, General Manager, and Managers, must successfully complete the franchisor's Initial Training Program. Candidates must demonstrate sufficient financial capability to properly develop, operate, and maintain the cafe.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
limited
Territory Size Requirements
Corner Bakery Cafe's protected area is typically defined as a radius of one-quarter of a mile to three miles around the franchised location. The exact size is determined based on demographic and other parameters detailed in the operations manual.
Staffing Notes
Corner Bakery Cafe requires specific management staffing. For the first six months after opening, each franchised cafe must have on-site supervision from an Operating Partner, Multi-Unit Manager, or General Manager, plus three Managers (one of whom can be a Shift Supervisor). After this initial period, the requirement reduces to one Operating Partner/Multi-Unit Manager/General Manager and two Managers. If a franchisee fails to employ at least three managers who have completed the initial training, the franchisor has the right to send its own personnel to manage the cafe temporarily, at the franchisee's expense. The General Manager position must be full-time and solely dedicated to the franchised cafe, not combined with other roles. Franchisees are solely responsible for hiring, employment terms, compensation, and proper training of all employees in human resources and customer relations.