What is the estimated range for Initial Inventory for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
">A. Single Territory
| Type of Expenditure | Amount | When Due | To Whom Payment is Made | ||
|---|---|---|---|---|---|
| Initial Franchise Fee | $40,000 | Lump sum | When Franchise | Us | |
| (Note 1) | Agreement is signed | ||||
| Construction and Leasehold | $5,000 – $10,000 | As arranged | As incurred | Contractors, suppliers, | |
| Improvements (Note 2) | and/or landlord | ||||
| Lease Deposits – Three | $8,000 – $16,000 | As arranged | As incurred | Landlord | |
| Months (Note 3) | |||||
| Utility Deposits (Note 4) | $400 – $4,000 | As arranged | As incurred | Utility suppliers | |
| Furniture, Fixtures, and | $3,000 – $30,000 | As arranged | As incurred | Suppliers | |
| Equipment (Note 5) | |||||
| Initial Inventory (Note 6) | $100 – $1,000 | As arranged | As incurred | Suppliers | |
| Computer, Software, and | $1,000 – $10,000 | As arranged | As incurred | Suppliers | |
| Business Management | |||||
| System (Note 7) | |||||
| Work Vehicle (Note 8) | $0 – $8,000 | As arranged | As incurred | Vehicle dealer | |
| Start-Up Marketing (Note 9) | $13,000 – $40,000 | As arranged | As incurred | Suppliers | |
| Insurance Deposits – | $4,000 – $40,000 | As arranged | As incurred | Insurers | |
| Three Months (Note 10) | |||||
| Travel for Initial Training | $2,500 – $12,500 | As arranged | As incurred | Airlines, hotels, | |
| (Note 11) | restaurants | ||||
| Professional Fees (Note 12) | $1,000 – $25,000 | As arranged | As incurred | Attorneys, accountants, architects, advisors | |
| Licenses and Permits (Note 13) | $1,000 – $10,000 | As arranged | As incurred | Government | |
| Additional Funds – | $15,000 – $45,000 | As arranged | As incurred | Us, employees, | |
| Three Months (Note 14) | suppliers, landlord | ||||
| Total Estimate (Note 15) | |||||
| # Explanatory Notes to Item 7 for a Single Territory |
Note 1: Initial Franchise Fee – The Initial Franchise Fee is $
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 initial investment for initial inventory ranges from $100 to $1,000. This inventory includes items like stationery, business cards, paper products, and branded apparel. Franchisees must purchase these initial and ongoing system supplies from Cordova, its affiliates, or designated suppliers.
The relatively low cost of initial inventory suggests that Cordova may not require franchisees to maintain a large stock of physical products. This could mean that the business model relies more on services or digital products, or that inventory is managed on a just-in-time basis. However, franchisees should confirm with Cordova what specific items are included in the initial inventory and how ongoing inventory replenishment will work.
Prospective franchisees should also inquire about any restrictions on suppliers and whether there are opportunities to negotiate better pricing or terms with approved vendors. Understanding the inventory requirements and supply chain dynamics is crucial for managing costs and ensuring smooth operations for a Cordova franchise.