Is a Cordova franchisee required to comply with all applicable laws and regulations?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) Franchisee shall, at all times, investigate, review, and comply with all laws, rules, and regulations related to all laws, rules, and regulations related to client and employee privacy obligations and protections and, all laws, rules, and regulations, related to the privacy and protection of client and employee information and data and, all laws, rules, and regulations related to client and employee solicitations.
(4) Franchisee must, at all times, immediately notify Franchisor in writing of any of the following concerning Franchisee, and/or the Franchised Business: (a) any cause of action, claim, lawsuit, proceeding, and investigation; (b) issuance of any order, writ, injunction, award, and/or decree by any court, agency, or other governmental entity; and (c) any notice of violation of any law, ordinance, code, permit, or regulation.
(5) Franchisee shall, at all times, ensure that all advertising and promotion of the Franchised Business by Franchisee is completely factual and conforms to the highest standards of ethical advertising, and is in conformity with Franchisor's standards and specifications.
Franchisee shall refrain from any business practice, advertising practice, or personal conduct that may be injurious to Franchisor, the System, Cordova Businesses, and/or the Licensed Marks.
Franchisor, in Franchisor's sole discretion, shall possess, among other things, the unilateral right to reject any and all advertising relating to the Franchised Business, Franchisor, the System, Cordova Businesses and/or using the Licensed Marks.
- (6) Franchisee shall comply with, and cause Franchisee's Owners to comply with and/or to assist Franchisor, to the fullest extent possible, in Franchisor's efforts to comply with Anti-Terrorism Laws (as defined below).
In connection with such compliance, Franchisee and each Owner certify, represent, and warrant that Franchisee's or any Owner's property or interests is not subject to being "blocked" under any of the Anti-Terrorism Laws, and Franchisee and each Owner are not otherwise in violation of any of the Anti-Terrorism Laws.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to the 2025 Cordova FDD, franchisees must comply with all applicable laws and regulations. Specifically, Cordova franchisees must investigate, review, and comply with all laws, rules, and regulations related to client and employee privacy obligations and protections, information privacy, and solicitations. Franchisees must also notify Cordova immediately in writing of any legal issues, such as lawsuits, orders, or notices of violation.
Cordova franchisees must ensure that all advertising and promotion of the Franchised Business is completely factual, conforms to the highest standards of ethical advertising, and aligns with Cordova's standards and specifications. Franchisees are prohibited from any business, advertising, or personal conduct that may harm Cordova, the System, Cordova Businesses, or the Licensed Marks. Cordova retains the right to reject any advertising related to the Franchised Business.
Furthermore, Cordova franchisees must comply with Anti-Terrorism Laws and ensure that their property and interests are not subject to being "blocked" under these laws. They must also certify that they are not in violation of any Anti-Terrorism Laws. This requirement highlights the importance of adhering to legal and ethical standards in all aspects of the franchise operation.
These stipulations are typical in franchise agreements, as franchisors need to protect their brand reputation and ensure consistent legal compliance across all franchise locations. Failure to comply with these regulations could result in penalties, legal action, or termination of the franchise agreement.