What criminal convictions of a Cordova franchisee or owner can lead to default?

According to Cordova's 2025 Franchise Disclosure Document, a franchisee or an owner of a Cordova franchise can be in default of their agreement if they are convicted of a felony crime, or plead guilty or nolo contendere to a felony crime. This means that if a franchisee or owner is found guilty of a serious crime, even if they don't admit guilt but accept the punishment, Cordova has grounds to terminate the franchise agreement.

This provision protects Cordova's brand and reputation by ensuring that its franchisees and owners maintain a certain standard of legal and ethical conduct. A felony conviction can severely damage the public's perception of the Cordova brand, and this clause allows Cordova to take swift action to disassociate itself from such individuals. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand from reputational risk.

For a prospective franchisee, this highlights the importance of maintaining a clean criminal record. Any past or pending felony charges should be disclosed and discussed with Cordova during the due diligence process. Furthermore, franchisees and owners must ensure they conduct themselves legally and ethically throughout the term of the franchise agreement to avoid potential default and termination.