To what area must the marketing of a Cordova Business be targeted?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
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Soliciting by You Outside Your Territory and Territory Rules
You must operate your Cordova Business and provide the Approved Services and Products to clients exclusively within your Operating Territory. The marketing of your Cordova Business must be targeted to your Operating Territory. You may place a candidate that resides and/or is located outside of your Operating Territory and within the United States (an "Out of Territory Candidate") with a client that is located within your Operating Territory provided that you comply with rules and System requirements including, but not limited to, our fee splitting rules as set forth in the Manuals.
You may solicit candidates who reside within or outside of Franchisee's Operating Territory provided that you comply with our solicitation rules and requirements as designated by us in our Manuals. You are not allowed to directly solicit clients outside of your Operating Territory, and you do not have the right to use other channels of distribution, such as the internet, catalog sales, or other direct marketing to make sales outside your Operating Territory.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
Except as otherwise noted above, there are no restrictions on us from soliciting or accepting orders from clients inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under the Franchise Agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Source: Item 12 — TERRITORY (FDD pages 28–30)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the marketing of a Cordova business must be targeted to the franchisee's Operating Territory. The FDD specifies that franchisees must operate their Cordova business and provide approved services and products exclusively within their Operating Territory. While franchisees can place candidates residing outside their territory with clients inside their territory, and solicit candidates both within and outside their territory, direct client solicitation is restricted to the Operating Territory.
This territorial restriction means a Cordova franchisee's marketing efforts should primarily focus on the geographic area defined as their Operating Territory. According to the FDD, an Operating Territory generally consists of a geographic area with a population of approximately 500,000 people. This focus helps to avoid wasted marketing spend in areas where the franchisee is not authorized to directly solicit clients.
However, the FDD also indicates that Cordova retains significant rights within a franchisee's territory. Cordova can solicit or accept orders from clients inside the franchisee's territory and use various channels of distribution, including the internet, to make sales within the territory. This means that while a franchisee must target their marketing to their Operating Territory, Cordova itself is not restricted from competing within that same territory. This lack of exclusivity is a significant factor for prospective franchisees to consider.