Corner Bakery Cafe Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Corner Bakery Cafe is a fast-casual franchise serving breakfast, sandwiches, salads, soups, and fresh-baked goods. Franchisees run cafes managing kitchen, counter service, and staffing.
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). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.1M – $2.3M
- 95th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 99
- 76th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.1M – $2.3M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAudited financial statements are for Best Cafe - Franchises, LLC (the franchisor, "BCF"), a wholly owned subsidiary of Best Cafe, LLC; audited by Daniel P. Balley, CPA, PC (Plano, TX), opinion dated April 17, 2025, for FY ended Dec 31, 2024 and the period from formation (May 9, 2023) to Dec 31, 2023. However, the primary financial statement tables (Balance Sheets, Statement of Operations, Statement of Member Equity) did not capture in this OCR text - the numeric tables are blank - so total assets, total liabilities, member equity, revenue, and net income could not be extracted and are left null rather than guessed. Note: a $133,075,733 total-revenue figure appears in Item 7 but belongs to affiliate Best Cafe Enterprises, LLC (company-owned cafe operator), NOT the franchisor, so it was not used.
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- 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
- CEO title
- Chief Executive Officer
- Chris Dharod
- Incorporated in
- Delaware
- HQ
- 13355 Noel Road, Suite 1645, Dallas, Texas 75240
- Auditor
- Daniel P. Balley, CPA, PC
- Audited financials
- Franchisor revenue
- $4.9M
- vs $2.8M 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
- CEO
- Chris Dharod
- Headquarters
- Texas
- Founded
- 2006
- FDD year
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 160% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 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
- Bottom third — review vs category
- Liquid capital req'd
- $150K – $450K
- Bottom third — review vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.3%
- 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 | 1.3% of gross sales |
| Technology fee | $400 |
| Training fee | $40K |
| Transfer fee | $4K |
| Renewal fee | $20K |
| Inventory (initial) | $14K – $25K |
| Total fee load | 7.3% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Corner Bakery Cafe did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Corner Bakery Cafe unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Audited financial statements are for Best Cafe - Franchises, LLC (the franchisor, "BCF"), a wholly owned subsidiary of Best Cafe, LLC; audited by Daniel P. Balley, CPA, PC (Plano, TX), opinion dated April 17, 2025, for FY ended Dec 31, 2024 and the period from formation (May 9, 2023) to Dec 31, 2023. However, the primary financial statement tables (Balance Sheets, Statement of Operations, Statement of Member Equity) did not capture in this OCR text - the numeric tables are blank - so total assets, total liabilities, member equity, revenue, and net income could not be extracted and are left null rather than guessed. Note: a $133,075,733 total-revenue figure appears in Item 7 but belongs to affiliate Best Cafe Enterprises, LLC (company-owned cafe operator), NOT the franchisor, so it was not used.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.3% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -17.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Corner Bakery Cafe Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
- 15.6%
- Company-owned
- 67
- Corporate units in the system
- % franchised
- 32%
- vs corporate-owned
- Net growth (3-yr)
- -17.9%
- Net unit change over 3 years
- 3-yr CAGR
- -17.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 5
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 · 14 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
- N/A
- limited sample (8 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Three Item-3 matters disclosed: (1) Nerco, LLC et al. v. Voodoo Licensing Southern, LLC et al. (S.D. Ala.), a pending action involving VP of Franchise Development Thomas Harper's prior role, alleging fraud/breach; settlement conference scheduled April 2025. (2) State of Delaware ex rel. French v. Card Compliant, LLC et al. — qui tam gift-card action against predecessor CBC, settled 2018 ($700,000). (3) Buon Hospitality, Inc. v. CBC Restaurant Corp. et al. — franchisee FPR/fraud suit against predecessor, settled 2015 (CBC paid $974,498.52).
Largest disclosed settlement: $974,498
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)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 41 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
Three Item-3 matters disclosed: (1) Nerco, LLC et al. v. Voodoo Licensing Southern, LLC et al. (S.D. Ala.), a pending action involving VP of Franchise Development Thomas Harper's prior role, alleging fraud/breach; settlement conference scheduled April 2025. (2) State of Delaware ex rel. French v. Card Compliant, LLC et al. — qui tam gift-card action against predecessor CBC, settled 2018 ($700,000). (3) Buon Hospitality, Inc. v. CBC Restaurant Corp. et al. — franchisee FPR/fraud suit against predecessor, settled 2015 (CBC paid $974,498.52).
Items 10, 11
Training & Operations
- Classroom training
- 53 hrs
- On-the-job training
- 530 hrs
- Training location
- Dallas, Texas (Corporate Headquarters / company-affiliate Cafe)
- 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
37 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 Item 19 in the Corner Bakery Cafe FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Corner Bakery Cafe FDD and qualifies whose outlets they describe.
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 C-grade franchise with a verdict score of 41 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Corner Bakery Cafe, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.