Where in the Cordova Franchise Agreement can I find the definition of 'Renewal Term'?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
"Term" means the period of time set forth and defined in Article 2.B. of this Agreement and the applicable Renewal Term, if any, if Franchisee invokes Franchisee's renewal rights in accordance with the terms of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the definition of 'Renewal Term' can be found within Article 2.B of the Franchise Agreement. The document states that the term 'Term' encompasses both the initial period defined in Article 2.B and any applicable Renewal Term, assuming the franchisee exercises their renewal rights according to the agreement's terms.
This means that as a prospective Cordova franchisee, you should carefully review Article 2.B to understand the initial term length and the conditions under which you can renew your franchise. Understanding these terms is crucial for long-term business planning and financial forecasting.
It is important to note that the definition of 'Term' explicitly links the initial term with the 'Renewal Term,' emphasizing that the renewal is not automatic but depends on the franchisee meeting certain conditions and invoking their renewal rights. Therefore, franchisees should pay close attention to the requirements for renewal to ensure they can continue operating their Cordova business beyond the initial term.