What is the current monthly Technology Fee for Cordova franchisees?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Company Owned Outlet: Omaha, Nebraska | ||
|---|---|---|
| Gross Sales and Disclosed Expenses Information | ||
| 2024 Calendar Year | Total $ $ | |
| Less: | ||
| Direct Cost of Goods and Services Sold | ($9,245,725) | 67.1% |
| Less: Disclosed Expenses | ||
| Rent | ($26,400) | 0.2% |
| Utilities | ($9,008) | 0.1% |
| Office Supplies | ($6,000) | 0.0% |
| Marketing | ($44,488) | 0.3% |
| Insurance | ($31,104) | 0.2% |
| Technology | ($52,038) | 0.4% |
| Administrative and Management Labor Cost | ($939,556) | 6.8% |
| Less: Adjustments for Select Franchise Related Expenses | ||
| Royalty Fee2 | ($1,377,122) | 10.0% |
| Brand Development Fund Fee3 | N/A | 0.0% |
| Technology Fee4 | ($4,200) | 0.0% |
| Local Marketing5 | N/A $2,035,583 | 0.0% |
| Notes to Table: | ||
| 1 “%” represents the percentage of total Gross Sales. | ||
| 2 The Royalty Fee is equal to 10% of Gross Sales, subject to a Minimum Quarterly Royalty Fee Requirement as set forth in | ||
| Item 6 of this Disclosure Document. | ||
| 3 The Brand Development Fund Fee is currently not assessed but we reserve the right to collect a Brand Development Fund | ||
| Fee of up to 2% of Gross Sales. | ||
| 4 The Technology Fee is currently $350 per month |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 37–41)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the current Technology Fee is $350 per month. However, Cordova retains the right to increase this fee up to $750 per month. This means that while franchisees can expect to pay $350 monthly at the start of their franchising agreement, this amount is subject to change at Cordova's discretion.
For a prospective franchisee, this implies a degree of uncertainty in their ongoing operational costs. While the Technology Fee may seem relatively small, any potential increase could impact the franchisee's profitability, especially if they are operating on a tight budget. It is important to note that the Technology Fee is listed as $4,200 annually within the disclosed expenses for the company-owned outlet in Omaha, Nebraska, which aligns with the $350 monthly fee.
Franchisees should consider this potential fee increase when projecting their expenses and revenue. It would be prudent to discuss with Cordova the conditions under which the Technology Fee might be raised and how much advance notice franchisees would receive. Understanding these factors will allow franchisees to better prepare for possible changes in their financial obligations to Cordova.