What is the Brand Development Fund for Cordova?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Development Fund We may control and administer a brand development fund (the "Brand Development Fund") (Franchise Agreement, Article 9.A.).
As disclosed in Item 6 of this Disclosure Document, you must contribute a monthly sum not to exceed 2% of your monthly Gross Sales to the Brand Development Fund.
We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, advertising councils, franchisee advisory councils, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System.
Our company and/or affiliate owned Cordova Businesses may but are not required to contribute to the Brand Development Fund.
The Brand Development Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12-month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year.
We are not required to segregate the Brand Development Fund from our general operating funds and we are not a fiduciary or trustee of the Brand Development Fund.
The Brand Development Fund will not be used to directly promote your Cordova Business or the marketing area in which your Cordova Business will be located. (Franchise Agreement, Article 9.A.).
We may utilize the Brand Development Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Cordova Businesses and the marketing of Cordova Businesses.
These technology developments and/or improvements may relate, among other things, to our website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Cordova Businesses.
You may or may not benefit from these technology developments and improvements. (Franchise Agreement, Article 9.A.).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–28)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, Cordova may control and administer a brand development fund. Franchisees may be required to contribute a monthly sum not to exceed 2% of their monthly Gross Sales to the Brand Development Fund.
The Brand Development Fund may be used for various purposes, including market studies, research, service and product development, testing, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, tracking costs, agency fees, advertising councils, franchisee advisory councils, and administrative costs. These costs may include reimbursement for direct administrative and personnel costs associated with advertising and public relations. The fund can also cover any other costs associated with the development, marketing, and testing of advertising, marketing, and public relations materials, as well as the purchase of media placement, advertising time, and public relations materials in national, regional, or other advertising and public relations media.
Cordova and its affiliates may contribute to the Brand Development Fund, but they are not required to do so. The Brand Development Fund will maintain unaudited financial records detailing its expenditures and will make available to franchisees (no more frequently than once in any 12-month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year. Cordova is not required to segregate the Brand Development Fund from its general operating funds and is not a fiduciary or trustee of the Brand Development Fund. The Brand Development Fund will not be used to directly promote a franchisee's Cordova Business or the marketing area in which it is located.
Cordova may use the Brand Development Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Cordova Businesses and the marketing of Cordova Businesses. These technology developments and/or improvements may relate to Cordova's website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Cordova Businesses. Franchisees may or may not benefit from these technology developments and improvements. Cordova may also use the Brand Development Fund to compensate itself for administrative fees associated with managing the fund and for its internal employee salaries, expenses, and overhead associated with or reasonably allocated to managing the activities of the fund and performing services on behalf of the fund.