Corner Bakery CafeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Corner Bakery Cafe franchise requires a total initial investment of $1.1M – $2.3M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.1M – $2.3M
- 44th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 99
- 41st pct Service Resta…
- SBA default
- 14.3%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 14% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $1.1M – $2.3M including a $40K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Best Cafe - Franchises, LLC
- Parent company
- Best Cafe, LLC
- Ultimate parent
- Sunil D. Dharod Revocable Trust
- Predecessor
- CBC Restaurant Corp
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 13355 Noel Road, Suite 1645, Dallas, Texas 75240
- Auditor
- Daniel P. Balley, CPA, PC
- Audited financials
- Franchisor revenue
- $2.8M
- vs $4.9M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- On Smile
- Best Cafe Enterprises
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Corner Bakery Cafe franchisees operate casual fast-casual bakery-cafe concepts serving breakfast, lunch, and baked goods in protected territories. Daily operations include managing front-of-house customer service, overseeing baking/food preparation (or outsourced production), inventory management, staffing, and point-of-sale operations, with typical daypart focus on morning/breakfast revenue.
- CEO
- Chris Dharod
- Headquarters
- TX
- Founded
- 2006
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Pre-Construction Costs | $25K | $144K | |
| Construction Costs | $450K | $997K | |
| Front of House Furniture, Fixtures & Equipment | $40K | $89K | |
| Back of House Furniture, Fixtures & Equipment | $208K | $300K | |
| Smallwares | $23K | $40K | |
| Technology System | $45K | $65K | |
| Catering Equipment | $35K | $45K | |
| Real Property | — | — | |
| Initial Franchise Feenot refundable | $40K | $40K | |
| Grand Opening Marketing | $15K | $15K | |
| Training | $40K | $100K | |
| Inventory | $14K | $25K | |
| Security Deposits | $5K | $25K | |
| Additional Funds - 3 Months | $150K | $450K | |
| Development Feenot refundable | $40K | $60K | |
| Leasehold and Office Expenses | $0 | $2K | |
| Additional Funds - 3 Months (Development Agreement) | $0 | $15K | |
| Total initial investment | $1.1M | $2.4M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.1M – $2.3M
- Near category avg vs category
- Liquid capital req'd
- $150K – $450K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.3%
- typical 3–5%
- Total fee load
- 7.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.3% of gross sales |
| Technology fee | $400 |
| Transfer fee | $8K |
| Renewal fee | $20K |
| Inventory (initial) | $14K – $25K |
| Total fee load | 7.3% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Corner Bakery Cafe Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 99
- Opened
- 0
- Last reporting year
- Closed
- 5
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.1%
- Company-owned
- 67
- Corporate units in the system
- % franchised
- 32%
- vs corporate-owned
- Net growth (yr3)
- -13.5%
- Net unit change last year
- 3-yr CAGR
- -17.9%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 8
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Ceased ops
- 5.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $9.2M
- Median loan
- $1.4M
- 50th percentile
- Charge-off rate
- 14.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Corner Bakery Cafe's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapidly shrinking system with litigation history, missing financial disclosures, and fraud-related allegations against franchise development leadership present substantial risk to franchisee capital.
Litigation (Item 3)
One pending franchisee lawsuit (Nerco, LLC et al v. Voodoo Licensing Southern, LLC) involving fraud, misrepresentation, breach of contract claims related to liquor license. One prior qui tam action against predecessor CBC Restaurant Corp regarding unused gift card reporting violations. Settlement conference scheduled April 29, 2025.
Largest disclosed settlement: $974,499
Bankruptcy (Item 4)
Disclosed in last 7 years
Audited financials (Item 21)
Yes · Daniel P. Balley, CPA, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 100 / 100 rating
- 01MEDSystem contracting sharply: 13.5% unit decline YoY indicates deteriorating franchisee performance and franchisor support capacity
- 02HIGHPending litigation against VP of Franchise Development involving fraud allegations raises concerns about sales practices and disclosed financial projections to prospective franchisees
- 03MEDNo Item 19 financial performance representations disclosed — prevents validation of franchise profitability claims and suggests franchisor cannot substantiate unit economics
- 04HIGHTwo prior settled litigations involving gift card reporting and unauthorized financial performance representations indicate pattern of regulatory/disclosure issues
- 05MEDHigh capital requirement ($1.09M–$2.34M) combined with undisclosed average net income creates significant downside risk without transparency on returns
- 06MINOR5% royalty on gross sales (not net) reduces margins further and creates franchisor incentive misalignment during low-margin periods
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
One pending franchisee lawsuit (Nerco, LLC et al v. Voodoo Licensing Southern, LLC) involving fraud, misrepresentation, breach of contract claims related to liquor license. One prior qui tam action against predecessor CBC Restaurant Corp regarding unused gift card reporting violations. Settlement conference scheduled April 29, 2025.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 530 hrs
- Site selection
- joint
- POS system
- computerized cash accounting and point of sale system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: computerized cash accounting and point of sale system
Item 20 · call current owners
Franchisee Contacts
39 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Corner Bakery Cafe · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Corner Bakery Cafe franchise?
The total investment to open a Corner Bakery Cafe franchise ranges from $1.1M – $2.3M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Corner Bakery Cafe franchise owners earn?
Corner Bakery Cafe does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Corner Bakery Cafe's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Corner Bakery Cafe (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Corner Bakery Cafe franchise locations are there?
As of their most recent FDD filing, Corner Bakery Cafe has 99 total units in the United States, including 32 franchised units and 67 company-owned units.
Is Corner Bakery Cafe a good franchise to buy?
FranchiseVerdict rates Corner Bakery Cafe as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.