What is the estimated period covered by the insurance deposit for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 10: Insurance Deposits – Three Months – You are required to maintain minimum insurance coverage as designated by us. This estimate is for the cost of an initial deposit to obtain the minimum required insurance the initial three months of monthly insurance installment premium payments. We recommend that you consult with your insurance agent before signing a Franchise Agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the insurance deposit covers an initial three-month period. The FDD specifies that franchisees are required to maintain minimum insurance coverage, and the estimated cost provided is for an initial deposit to secure this coverage, as well as the initial three months of monthly insurance installment premium payments.
Prospective Cordova franchisees should factor this into their initial investment calculations. The estimated range for insurance deposits is $4,000 to $40,000, payable to insurers as incurred. It is important to note that this deposit is intended to cover the first three months of operation, after which franchisees will need to budget for ongoing insurance premium payments.
Cordova recommends that franchisees consult with their insurance agent before signing the Franchise Agreement to fully understand the insurance requirements and associated costs. This proactive approach can help franchisees avoid unexpected expenses and ensure they have adequate coverage from the outset.