Corner Bakery Franchise Cost, Franchise Fees, & Initial Investment Cost

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The total estimated investment cost necessary to begin operation of a Corner Bakery Cafe Franchise ranges from $952,000 to $1,952,000. This includes the Corner Bakery Franchise Fee of $40,000 paid to the franchisor. The ongoing Corner Bakery Royalty is 5% of gross sales. The ongoing marketing fund contribution is currently 0.75% of gross sales paid weekly with the royalty. The brand development fee (including national marketing contribution) will not exceed 4.5% of gross sales. The ongoing regional marketing fund contribution is currently 1.75% of gross sales, including the National Fund.

Estimated Initial Investment

The total estimated initial investment ranges from $952,000 – $1,952,000. Like many other franchises, a large part of these costs is attributable to construction and equipment costs. Here is how the investment breaks down:

  • Pre-construction costs: $25,000 – $144,000
  • Construction costs: $372,000 – $750,000
  • Front of House Furniture, Fixtures & Equipment: $33,000 – $89,000
  • Back of House Furniture, Fixtures & Equipment: $208,000 – $275,000
  • Smallwares: $23,000 – $34,000
  • Technology System: $34,000 – $50,000
  • Catering Equipment: $40,000
  • Real Property: Variable
  • Initial Franchise Fee: $25,000
  • Grand Opening Marketing: $15,000
  • Training: $40,000 – $100,000
  • Inventory: $10,000 – $20,000
  • Security Deposits: $2,000 – $10,000
  • Additional Funds: $125,000 – $400,000
  • Total Estimated Initial Investment: $952,000 – $1,952,000

Corner Bakery Net Worth Requirement

Maybe you can find the money to build a new Corner Bakery, but along with that Corner Bakery is also going to check out your net worth. The current net worth requirement to become a Corner Bakery franchisee is a liquidity requirement of $1,500,000 with net worth of $3,000,000.

Corner Bakery Locations

The number of Corner Bakery Cafes at the end of 2017 was 187. This included 116 company-owned cafes and 71 franchised cafes. This was down from 196 cafes in 2016.

How Much Money can you make with Corner Bakery?

According to the FDD, the average gross sales per location are $2,179,238. On those sales, the average restaurant level EBITDA is $181,352 (8.3%).

Restaurant level margin is typically thought of before paying debt, taxes or for above store management. The other important factors to profitability include labor and food costs (cost of goods) Cost of goods is 29.3% and labor runs around 35% (34.9%)

Corner Bakery Royalty

The ongoing Corner Bakery royalty is 5% of gross sales. This amount is due weekly following the end of each Reporting Period paid by electronic funds transfer. A reporting period is defined as a one-week period commencing on Monday and ending on Sunday, or another period designated by the franchisor periodically. This is swept via EDTA.

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