What costs can Cordova include in transfer fees?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
sor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
- (10) At the transferee's expense, the transferee, and the transferee's Managing Owner, managers and/or any other applicable employees of transferee's Cordova Business must complete any training programs then in effect for franchisees of Cordova Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
- (11) Franchisee must pay a fixed sum of $20,000 to Franchisor (the "Transfer Fee");
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the transfer fee is a fixed sum of $20,000. In addition to this fee, the transferee is responsible for the expenses related to improving, modifying, refurbishing, renovating, remodeling, and/or upgrading the Administrative Office to meet Cordova's current standards. These upgrades must be completed within a timeframe specified by Cordova.
Furthermore, the transferee must cover the costs for themselves, their Managing Owner, managers, and any other relevant employees to complete any training programs that Cordova requires for its franchisees. The transferee's employees, directors, officers, independent contractors, and agents who will have access to confidential information must also execute a Confidentiality Agreement.
Franchisee entering into an agreement with Franchisor agreeing to subordinate any obligations of transferee to make installment payments of the purchase price to Franchisee to the transferee's obligations to Franchisor, including, without limitation, transferee's obligations with respect to Royalty Fees and Advertising Contributions.