On what date is the Brand Development Fund Fee due to Cordova?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Sales that Franchisee is required to contribute to the Brand Development Fund. Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees or as otherwise designated by Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Brand Development Fund Fee is due to Cordova on the "Due Date". The FDD specifies that "Due Date" has the meaning defined and set forth in Article 5.B. of the Franchise Agreement.
Article 9.A.(1) states that if Cordova institutes a Brand Development Fund, franchisees must pay a mandatory and continuing fee on the Due Date. This fee is a percentage of Gross Sales, determined by Cordova, for each monthly Accounting Period. However, the franchisee will not be required to contribute more than 2% of Gross Sales for each monthly Accounting Period.
Prospective franchisees should refer to Article 5.B. of the Franchise Agreement to understand the specific payment terms and methods for Royalty Fees, as the Brand Development Fund Fee is tied to these terms. Franchisees should also note that Cordova has the right to modify the percentage of Gross Sales required for the Brand Development Fund Fee with written notice.