Are the fees described in the Cordova FDD refundable?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
|# Explanatory Notes to Item 6
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. Payment is subject to our specification and instruction, including, our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Cordova Business into the designated bank accounts that are subject to our ACH authorization. You must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Cordova Business. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Note 2: Royalty Fee and Supplemental Royalty Fee – You must pay to us a continuing royalty fee (the "Royalty Fee") equal to 10% (the "Royalty Rate") of your monthly Gross Sales and subject to minimum quarterly Royalty Fee requirements (the "Minimum Quarterly Royalty Fee Requirement").
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the fees outlined in Item 6 are generally not refundable. The FDD explicitly states that all fees are uniformly imposed, recurring, and not refundable unless otherwise specified. This means that a Cordova franchisee should expect to pay all listed fees without the possibility of a refund, regardless of the circumstances, unless a specific exception is noted.
Cordova requires franchisees to sign an ACH Authorization Form, allowing the company to electronically debit fees from the franchisee's designated bank account. This system ensures that Cordova can collect fees promptly and efficiently. Franchisees must also use Cordova's designated payment, point-of-sale, and credit card processing systems and cover any associated bank service charges.
One specific fee, the Customer Services and Refunds fee, is based on costs incurred by Cordova, including refunds or credits issued to clients dissatisfied with the franchisee's services. In such cases, Cordova may reimburse the client directly, and the franchisee is then required to reimburse Cordova for the amount refunded. This policy highlights the importance of quality service and customer satisfaction in the Cordova franchise system, as franchisees are ultimately responsible for addressing customer complaints and potential refunds.