What is the estimated lease deposit for a Cordova Administrative Office based on?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3: Lease Deposits – Three Months – This estimate is based on the assumption that you will be leasing the facilities of your Administrative Office and, is for the estimated amount of the initial lease deposit that you will be required to pay to the landlord at the time of signing your lease and before opening your Cordova Business. The estimate is based on the assumption that your lease deposit will be equal to three months of rent payments. Administrative Offices are, typically, located in non-retail commercial office facilities ranging in approximately 1,500 to 2,500 square feet and that permit administrative office operations. The amount of your lease deposit is something that you will directly negotiate with the landlord and will vary significantly based on a number of factors that include location and your own negotiations. This estimate does not include the purchase of real property should you elect to purchase the real property of your Administrative Office.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the estimated lease deposit for an Administrative Office is based on the assumption that the franchisee will be leasing facilities. The estimate, which ranges from $8,000 to $16,000, is calculated assuming the lease deposit will be equal to three months of rent payments. Cordova anticipates that Administrative Offices will typically be located in non-retail commercial office facilities ranging from 1,500 to 2,500 square feet, permitting administrative office operations.
The FDD emphasizes that the actual amount of the lease deposit is subject to direct negotiation between the franchisee and the landlord. This amount can vary significantly based on factors such as location and the franchisee's negotiation skills. The estimate provided does not account for the purchase of real property, should the franchisee elect to buy the Administrative Office's real estate.
Prospective Cordova franchisees should consider the variability of lease deposits when planning their initial investment. It is crucial to research local commercial real estate costs and negotiate effectively with landlords to secure favorable lease terms. Consulting with a real estate professional experienced in commercial leasing can provide valuable assistance in this process.