For a Cordova franchise, is rent considered a Disclosed Expense?

According to Cordova's 2025 Franchise Disclosure Document, rent is considered a Disclosed Expense. The FDD defines "Disclosed Expenses" as select expenses including rent, utilities, office supplies, marketing, insurance, technology, and administrative and management labor cost. This definition is important for prospective franchisees as it outlines which expenses Cordova includes in its financial performance representations.

Specifically, the FDD provides an analysis of the results of Cordova's Company Owned Outlet in Omaha, Nebraska, for the 2024 calendar year. In this analysis, rent is listed as a Disclosed Expense, amounting to $26,400, which represents 0.2% of gross sales for that outlet. This provides a tangible example of how rent is categorized and its relative impact on the company-owned outlet's financials.

It is important to note that the financial information provided is based on a Company Owned Outlet and may not be representative of franchised outlet performance. Cordova states that material financial and operational characteristics are reasonably anticipated to differ from future operational franchise outlets. These differences include managerial skill and efficiency, brand recognition, and the obligation for franchisees to pay ongoing fees such as Royalty Fees and Brand Development Fund Fees. Therefore, while rent is considered a Disclosed Expense, its actual impact on a franchisee's financial performance may vary.