What is the fee for Cordova franchisees with 2 territories in year 7 to 10?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
e with the following schedule:
| Total | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Years 7 to 10 |
|---|---|---|---|---|---|---|---|
| Territories | |||||||
| 1 | $5,000 | $7,500 | $12,500 | $20,000 | $50,000 | $75,000 | $100,000 |
| 2 | $10,000 | $15,000 | $25,000 | $40,000 | $80,000 | $120,000 | $200,000 |
| 3 | $15,000 | $22,500 | $37,500 | $60,000 | $130,000 | $200,000 | $300,000 |
| 4 | $20,000 | $30,000 | $50,000 | $80,000 | $160,000 | $250,000 | $400,000 |
| 5 | $25,000 | $37,500 | $62,500 | $100,000 | $ |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees operating with two territories will face a Minimum Quarterly Royalty Fee Requirement of $200,000 during years 7 through 10. This fee represents the minimum amount Cordova expects to receive in royalties each quarter from franchisees with that territory count during those years.
This Minimum Quarterly Royalty Fee Requirement is a critical factor for prospective franchisees to consider. If the standard royalty fee of 10% of gross sales does not meet or exceed the $200,000 quarterly minimum, the franchisee is obligated to pay the difference as a Supplemental Royalty Fee. This means that even if sales are lower than anticipated, the franchisee must still remit $200,000 each quarter.
For a franchisee with two territories, this structure creates a significant financial obligation. It is essential to carefully project potential sales and revenue to determine if the business can realistically support this minimum royalty payment. Franchisees should also be aware that this minimum requirement continues during any renewal term, and Cordova retains the right to increase it by up to 10% per annum within each calendar year of the renewal term. This escalating cost could further impact profitability and financial stability.