What failures trigger the Operations Non-Compliance fee for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Operations Non-Compliance fee, ranging from $450 to $1,000 per occurrence, is charged to franchisees who fail to comply with operational standards as required under the Franchise Agreement. This fee also covers inspection and re-inspection costs incurred by Cordova. The fee is due 14 days from the invoice date.
For a prospective Cordova franchisee, this means adhering strictly to the operational standards outlined in the Franchise Agreement is crucial to avoid incurring these fees. These standards likely cover various aspects of the business, such as service protocols, facility maintenance, and employee training.
The fact that the fee also includes inspection and re-inspection costs suggests that Cordova actively monitors franchisee compliance and may conduct regular or surprise inspections. Franchisees should ensure they understand all operational standards and maintain consistent compliance to avoid these potentially costly fees and the inconvenience of re-inspections.