What agreements are included in the definition of 'Ancillary Agreements' for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Ancillary Agreements" means, individually and collectively, each and every agreement between: (a) Franchisor and Franchisee, but not including this Agreement; (b) Franchisor and each of Franchisee's Owners, whether individually and/or collectively; and (c) Franchisor and each Spouse of Franchisee's Owners, whether individually and/or collectively.
Without limitation to the foregoing, the term Ancillary Agreements includes the Franchise Owner and Spouse Agreement and Guaranty and the Assignment of Telephone Numbers and Digital Media Accounts, as said agreements, individually and/or collectively, may have been entered into between the foregoing parties.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, 'Ancillary Agreements' encompass every agreement between Cordova and the franchisee, excluding the primary Franchise Agreement itself. This definition also extends to agreements between Cordova and each of the franchisee's owners, whether individually or collectively, as well as agreements with each spouse of the franchisee's owners, again, whether individually or collectively.
Specifically, the term 'Ancillary Agreements' includes the Franchise Owner and Spouse Agreement and Guaranty, and the Assignment of Telephone Numbers and Digital Media Accounts. These agreements, either individually or collectively, may be entered into between the involved parties. This broad definition ensures that all related agreements beyond the main Franchise Agreement are clearly identified and included under the umbrella term 'Ancillary Agreements'.
For a prospective Cordova franchisee, this means that they, their owners, and their spouses may be required to sign agreements separate from the Franchise Agreement. These additional agreements, such as the Franchise Owner and Spouse Agreement and Guaranty, likely impose obligations and responsibilities on these individuals, potentially including personal guarantees of the franchisee's financial obligations and adherence to confidentiality and non-competition covenants. The Assignment of Telephone Numbers and Digital Media Accounts suggests Cordova maintains control over these assets.
It is important for potential franchisees to carefully review all 'Ancillary Agreements' with legal counsel to fully understand their obligations and potential liabilities. Understanding the scope and implications of these agreements is crucial before investing in a Cordova franchise.