What costs are included in the Cordova Operations Non-Compliance fee?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Operations Non-Compliance fee ranges from $450 to $1,000 per occurrence. This fee is payable if a franchisee fails to comply with the operational standards outlined in the Franchise Agreement.
In addition to the initial fee for non-compliance, Cordova franchisees are also responsible for covering any inspection and re-inspection costs that Cordova incurs as a result of the franchisee's failure to meet operational standards. This means that the total cost of an operations non-compliance event could exceed the stated $450 to $1,000 range, depending on the extent and nature of the inspections required to rectify the non-compliance.
Franchisees should carefully review the operational standards detailed in the Franchise Agreement to ensure they understand their obligations and avoid incurring these non-compliance fees. Paying attention to these standards and maintaining compliance will help franchisees avoid unexpected costs and maintain a positive relationship with Cordova.