factual

Where can I find state-specific addendums related to the Cordova Franchise Agreement?

Cordova Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 23: RECEIPTS]

WASHINGTON FRANCHISE AGREEMENT AMENDMENT

Amendments to the Cordova Franchise Agreement:

The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.

    1. Conflict of Laws.

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.

    1. Franchisee Bill of Rights.

RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise.

There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.

Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.

    1. Site of Arbitration, Mediation, and/or Litigation.

In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.

In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

    1. General Release. [Item 23: RECEIPTS]

ILLINOIS FRANCHISE AGREEMENT AMENDMENT

Amendments to the Cordova Franchise Agreement:

In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705/1 to 705/45, and Ill. Admin. Code tit. 15, §200.100 et seq., the undersigned agree to the following modifications to Cordova Franchising, LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign Cordova Franchising, LLC, as follows:

  1. Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement:

Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.

Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.

Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.

Section 41 of the Illinois Franchise Disclosure Act Provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act, or any other law of Illinois is void

  1. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.G. of the Franchise Agreement:

Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.

Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.

Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.


[Item 23: RECEIPTS]

NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT

Amendments to the Cordova Franchise Agreement:

In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached Cordova Franchising, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:

The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Cordova Business will be located within the State of North Dakota.

Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."

Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."

Article 6 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."

Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."

Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota franchisees, North Dakota law shall apply."

Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."

Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."

Source: Item 22 — CONTRACTS (FDD page 44)

What This Means (2025 FDD)

According to Cordova's 2025 Franchise Disclosure Document, state-specific addendums to the franchise agreement can be found in Item 23, titled "Receipts". These addendums modify the standard Cordova Franchise Agreement to comply with specific state laws and regulations. The FDD includes examples of addendums for Illinois, North Dakota, and Washington.

These state-specific addendums address various legal aspects, including franchise law, franchisee rights upon termination or non-renewal, choice of law, and the enforceability of certain provisions such as general releases, consent to jurisdiction, covenants not to compete, and waivers of trial by jury or punitive damages. For example, the Illinois addendum specifies that Illinois law governs the franchise agreement and addresses venue stipulations. The North Dakota addendum clarifies the enforceability of specific clauses under North Dakota law. The Washington addendum addresses conflict of laws and the franchisee bill of rights.

It is important for prospective Cordova franchisees to carefully review any state-specific addendums that apply to their location. These addendums can significantly alter the terms of the standard franchise agreement and impact the franchisee's rights and obligations. By understanding these state-specific modifications, franchisees can ensure they are fully aware of their legal standing and responsibilities within their particular state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.