Can Cordova or its affiliates be the exclusive designated supplier for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
"System Supplies" means the equipment and supplies designated by us as required for use in connection with Franchisee's Cordova Business and the Approved Services and Products.
Franchisor shall provide Franchisee with access to the Operations Manual. The Operations Manual contains, as designated and determined by Franchisor, mandatory and, as applicable, suggested specifications, standards and operating procedures that Franchisor prescribes for Cordova Businesses. Franchisee shall operate the Franchised Business in strict accordance with the standards, specifications, and requirements set forth in the Operations Manual as, such standards, specifications, and requirements including, but not limited to, the Approved Services and Products, System Supplies, and, authorized and designated suppliers, as of the Effective Date of this Agreement, and, as they may be supplemented, modified, changed, and/or replaced in the future and, from time to time, by Franchisor, in Franchisor's Reasonable Business Judgment.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees are required to purchase and use specific supplies and products in their business. The FDD defines "System Supplies" as the equipment and supplies designated by Cordova as required for use in connection with the franchisee's Cordova business and the approved services and products.
Furthermore, the Operations Manual contains mandatory specifications, standards, and operating procedures that Cordova prescribes for its businesses. Franchisees must operate their franchised business in strict accordance with these standards, specifications, and requirements, including those related to approved services and products, system supplies, and authorized and designated suppliers. Cordova retains the right to modify these standards and requirements over time.
In essence, Cordova franchisees are obligated to use only the system supplies designated by Cordova in the operation of their franchised business. This suggests that Cordova, or its designated suppliers, can effectively be the exclusive supplier for certain essential products and services needed to operate the franchise. Prospective franchisees should carefully review the Operations Manual and the list of approved suppliers to understand the extent of these requirements and their potential impact on costs and sourcing options.