COBS Bread stores bake fresh product on-site throughout the day, which makes the ovens, mixers, and proofing equipment — not just the lease — a central part of what a resale is actually worth. Franchisor consent, the equipment's condition and financing, and training on the brand's baking systems typically run in parallel through closing.
COBS Bread resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer sets price and terms, conditioned on the franchisor's consent and a satisfactory review of the store's baking equipment and lease.
1–2 weeks†COBS Bread's franchisor reviews the proposed buyer and the deal terms, and may exercise a right of first refusal before approving an outside purchaser.
3–6 weeks†Whether a franchise disclosure document is required for this resale gets confirmed early, since the statutory resale exemption is read narrowly by Ontario courts.
reviewed alongside consent†Getting to closing
The commercial lease needs the landlord's consent to assign — frequently the pacing item for the whole closing, as with most bakery-café locations.
2–6 weeks†The store's baking equipment is confirmed as owned, leased, or financed, while the incoming operator completes training on COBS's baking systems before taking over.
runs alongside the other steps†Funds, equipment, and the lease all change hands together, with inventory and work-in-progress product settled at the count.
1 day, once conditions are met†Official franchise.cobsbread.com site confirms Canadian expansion since 2003 and active franchisee recruitment
Bakery chain with numerous Ontario storefronts as part of its national bakery network
This is the first real decision in a COBS Bread resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The store's assets — baking equipment, leasehold improvements, inventory, the lease, and the benefit of the existing franchise agreement, subject to consent. | The shares of the operating company — every location it holds, and everything it owes. |
| Seller's liabilities | Generally stay behind with the seller's existing corporation. | Generally come with the company, known and unknown, across every location it operates. |
| Franchisor consent & ROFR | Required for the specific location changing hands, often the pacing condition on the whole deal. | Required for the change of control itself — the franchisor reviews who is actually taking over. |
| The lease | Needs landlord consent to assign, timed alongside the franchisor's own consent — often the practical bottleneck for a bakery-café unit. | Usually stays in place unless the lease has its own change-of-control clause. |
| Staff (ESA) | Employment Standards Act continuity rules typically apply to how bakery staff, including trained bakers, carry over. | Employment generally continues uninterrupted — the employer doesn't change. |
| Tax angle | Buyer generally gets a stepped-up cost base on the assets purchased; an HST s.167 election may apply. | Seller may access the lifetime capital gains exemption on qualifying shares. |
The store's assets — baking equipment, leasehold improvements, inventory, the lease, and the benefit of the existing franchise agreement, subject to consent.
The shares of the operating company — every location it holds, and everything it owes.
Generally stay behind with the seller's existing corporation.
Generally come with the company, known and unknown, across every location it operates.
Required for the specific location changing hands, often the pacing condition on the whole deal.
Required for the change of control itself — the franchisor reviews who is actually taking over.
Needs landlord consent to assign, timed alongside the franchisor's own consent — often the practical bottleneck for a bakery-café unit.
Usually stays in place unless the lease has its own change-of-control clause.
Employment Standards Act continuity rules typically apply to how bakery staff, including trained bakers, carry over.
Employment generally continues uninterrupted — the employer doesn't change.
Buyer generally gets a stepped-up cost base on the assets purchased; an HST s.167 election may apply.
Seller may access the lifetime capital gains exemption on qualifying shares.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single COBS Bread location changing hands between one buyer and one seller, with a standard lease and consent process.
Start my file →A multi-unit operator selling several locations as one operating company, or a resale where the franchisor's right of first refusal or the equipment's financing needs to be worked through before terms are final.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
Generally, yes. Ovens, mixers, and proofing equipment are core to daily operations, so their condition, ownership status, and any financing or liens against them get closer diligence than at a format that doesn't bake on-site.
Franchisors in this sector typically screen incoming operators for business and financial capability rather than requiring a baking background personally, since the brand's own training covers its baking systems. That screening happens through the franchisor's process, separate from our legal work on your file.
That's addressed as part of the inventory count at closing — saleable inventory and work-in-progress product are typically counted and valued together, with the method agreed in the purchase agreement rather than improvised on the day.
Both matter, but for a bakery-café format the lease's remaining term and rent-to-sales ratio still tend to be the single biggest value lever, alongside the baking equipment's condition — we look at both together rather than one in isolation.
Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in the resale can trigger a full disclosure requirement anyway. We confirm whether it applies to your deal rather than assuming it from the word 'resale.'
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by COBS Bread or its franchisor.
Tell us about your COBS Bread resale — we'll point you the right way and confirm the cost in writing before any work begins.