Is a Cordova franchisee required to use only System Supplies?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
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We license a system (the "System") for the operation of a Cordova business (each, a "Franchised Business" or "Cordova Business") that provides short-term and long-term IT staffing solutions, executive placement, software consulting, and related services and products (the "Approved Services and Products"). The System also features and requires, as designated by us, your exclusive use of software, systems, products, supplies, equipment, and materials that we designate (the "System Supplies"). The System is identified by the Cordova trademark and such other trademarks, logos, and trade-dress that we may designate, modify or adopt from time to time and as same may or may not be registered with the United States Patent and Trademark Office (collectively, the "Licensed Marks"). You must develop and operate your Cordova Business in conformity with the specifications, procedures, criteria, and requirements that we designate in our confidential operations manual and other proprietary manuals that we designate and as we may supplement and modify from time to time (collectively, the "Manuals"). From time to time, we may modify, add to or discontinue our designated Approved Services and Products, System Supplies, and/or our specifications, methods and procedures for the service, marketing and sale of Approved Services and Products.
Your Cordova Business must be managed from a commercial office that supports the administrative management and day-to-day operations of the Franchised Business (an "Administrative Office"). Your Administrative Office must meet our standards and specifications, be located within your operating territory, and be approved by us.
Franchise Agreement
You may enter into a Franchise Agreement in the form attached to this Disclosure Document as Exhibit E to develop and operate a Cordova Business within an operating territory in conformity with the requirements of our System. At the time of signing the Franchise Agreement we will designate a geographic area comprising your operating territory.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees are required to exclusively use specific software, systems, products, supplies, equipment, and materials designated by Cordova, referred to as "System Supplies." This requirement is a key component of the Cordova System, which Cordova Business franchisees must adhere to.
The FDD states that the franchisee's right to operate under the Cordova System is contingent upon using only Cordova's designated System Supplies within their defined operating territory. This mandate ensures uniformity and quality control across all Cordova franchises, as it allows Cordova to standardize the services and products offered.
For a prospective franchisee, this means they will be obligated to purchase certain items directly from Cordova or approved suppliers. While this ensures consistency, it may also limit the franchisee's flexibility in sourcing supplies and potentially impact their operating costs. It is important to understand which items are designated as System Supplies and what the approved vendor options and associated costs are before investing in a Cordova franchise.