What does Cordova's approval of a transfer NOT constitute?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's appointment of a manager for Franchisee's Cordova Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below.
At all times, including while Franchisee's Cordova Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in
the operations of Franchisee's Cordova Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Cordova Business. Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time. Notwithstanding the foregoing, if Franchisee is a Corporate Entity and the Managing Owner is the only Owner of Franchisee, then Article 14.D.(1) shall apply as if the Managing Owner were the sole individual Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
Based on the 2025 Cordova Franchise Disclosure Document, the franchisor's appointment of a manager for the franchisee's Cordova business does not relieve the franchisee of their obligations under the agreement. This includes the obligations related to transferring the franchise.
Furthermore, the appointment of a manager by Cordova does not constitute a waiver of Cordova's right to terminate the agreement. This means that even if a manager is appointed, Cordova still retains the right to terminate the franchise agreement under the conditions outlined in Article 16.
Additionally, the FDD states that at all times, even when the Cordova business is managed by an appointed manager, Cordova is not liable for any debts, losses, costs, or expenses incurred in the operations of the franchisee's Cordova business. Cordova also is not liable to any creditor of the franchisee for any products, materials, supplies, or services purchased by the Cordova business. Cordova retains the right to charge a reasonable fee for these management services and may discontinue providing them at any time.