How does Cordova collect the Brand Development Fund fee?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Royalty (Notes 2 and 3) | 10% of Gross Sales | Monthly as designated by us | Will be debited automatically from your bank account by ACH or other means designated by us. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, while a Brand Development Fund fee of up to 2% of Gross Sales may be implemented in the future, Cordova is currently not assessing this fee. If implemented, the Brand Development Fund fee will be debited automatically from the franchisee's bank account by ACH (Automated Clearing House) or other means designated by Cordova.
Cordova requires franchisees to sign an ACH Authorization Form, allowing them to electronically debit the franchisee's designated bank account for all fees payable to Cordova and/or its affiliates. Franchisees must deposit the Gross Sales of their Cordova Business into designated bank accounts that are subject to Cordova's ACH authorization.
Furthermore, franchisees are required to install and use pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems that Cordova designates. Franchisees are responsible for paying all service charges and fees charged by their bank to allow Cordova to electronically debit their account.