Does the Cordova franchise currently assess Advertising Cooperatives fees?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Advertising Cooperatives (Note 6) | Up to $1,000 per Territory per month, currently not assessed | As established by cooperative members | If we authorize an advertising cooperative, fees that you pay to the cooperative will count to the satisfaction of your local marketing requirements, but will not exceed the local marketing requirement.
Note 6: Advertising Cooperatives – If two or more Cordova Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If established, you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Cordova Business franchisee will have one vote for each Cordova Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements but shall not exceed your local marketing requirement.
Note 5: Franchisee Directed Local Marketing – On an on-going monthly basis you must spend not less than $1,000 per Territory per month on the local marketing of your Cordova Business within your operating territory and in accordance with our standards and specifications.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, advertising cooperative fees are currently not assessed. However, Cordova retains the right to establish and require franchisee participation in a local or regional advertising cooperative if two or more Cordova businesses operate within a designated market.
If an advertising cooperative is established, franchisees will be required to make ongoing payments, with the amounts and caps determined by the cooperative members. Each Cordova Business franchisee will have one vote for each Cordova Business located within the cooperative market, and decisions will be made by a simple majority vote, assuming at least 25% of the designated cooperative members form a quorum. The FDD specifies that contributions to a designated local or regional cooperative will count toward satisfying the franchisee's minimum local marketing requirements, but cannot exceed that requirement. The Franchisee Directed Local Marketing requires franchisees to spend no less than $1,000 per territory per month.
The table in Item 6 indicates that the advertising cooperatives fee could be up to $1,000 per Territory per month. This fee is contingent upon Cordova authorizing an advertising cooperative. If authorized, fees paid to the cooperative will count toward the satisfaction of the local marketing requirements, but will not exceed the local marketing requirement.