What must a Cordova franchisee do to add Additional Territories?

According to Cordova's 2025 Franchise Disclosure Document, a franchisee may add additional territories subject to certain conditions. Each additional territory generally consists of a geographic area with a population of approximately 500,000 people. The franchisee must obtain Cordova's approval and pay the additional initial franchise fees as outlined in Item 5 of the FDD.

It's important to note that adding additional territories will also increase the franchisee's minimum quarterly royalty fee requirement and local marketing expenditure. This means that franchisees need to be prepared for higher ongoing costs if they choose to expand their territory holdings. The decision to grant additional territories remains at Cordova's discretion, indicating that availability and market conditions play a significant role in whether a franchisee's request will be approved.

Unlike some franchise systems that grant exclusive territories or rights of first refusal, Cordova franchisees do not receive either. This means that even with an existing territory, franchisees must still seek approval and pay additional fees to expand. The FDD also states that franchisees do not have the right to establish additional Cordova businesses, further emphasizing the importance of securing additional territories if growth is desired.