What is the estimated range for Utility Deposits for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) |
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 utility deposits ranges from $400 to $4,000. These deposits are paid to utility suppliers to secure services such as gas, electric, water, sewer, and internet access, which are necessary for operating the Cordova business.
The amount of the utility deposits can vary based on the requirements of the specific utility companies in the franchisee's location. These deposits are typically paid upfront, as incurred, before the Cordova business begins operations.
Prospective franchisees should budget accordingly and contact local utility providers to get a more precise estimate for their specific location. Understanding these costs is crucial for accurate financial planning when starting a Cordova franchise.