Who will a Cordova franchisee negotiate the lease deposit amount with?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
ay be accessible to clients.
Note 3: Lease Deposits – Three Months – This estimate is based on the assumption that you will be leasing the facilities of your Administrative Office and, is for the estimated amount of the initial lease deposit that you will be required to pay to the landlord at the time of signing your lease and before opening your Cordova Business. The estimate is based on the assumption that your lease deposit will be equal to three months of rent payments. Administrative Offices are, typically, located in non-retail commercial office facilities ranging in approximately 1,500 to 2,500 square feet and that permit administrative office operations. The amount of your lease deposit is something that you will directly negotiate with the landlord and will vary significantly based on a number of factors that include location and your own negotiations. This estimate does not include the purchase of real property should you elect to purchase the real property of your Administrative Office.
Note 4: Utility Deposits – To secure the appropriate utilities required for the operation of your Cordova Business, including gas, electric, water, sewer, and internet access, you will be required to pay upfront deposits to each applicable utility company.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, a franchisee will negotiate the lease deposit amount directly with the landlord. The FDD indicates that the lease deposit, estimated to be between $8,000 and $16,000 for three months, is paid to the landlord.
This negotiation is a standard practice in commercial leasing, where the tenant (the franchisee) and the landlord agree on the terms of the lease, including the deposit amount. The deposit serves as a security for the landlord in case the tenant defaults on rent payments or damages the property. Factors influencing the deposit amount can include the location of the administrative office and the franchisee's negotiation skills.
Prospective Cordova franchisees should be aware that the final lease deposit amount can vary significantly. It is advisable to research typical lease deposit amounts in their target location and to seek professional advice when negotiating the lease terms. This estimate does not include the purchase of real property should you elect to purchase the real property of your Administrative Office.