Does a Cordova franchisee have the right to establish additional Cordova Businesses?

According to Cordova's 2025 Franchise Disclosure Document, a franchisee is not granted the right to establish additional Cordova Businesses. However, a franchisee can potentially expand their involvement with Cordova by adding additional territories, subject to availability, Cordova's approval, and payment of additional initial franchise fees as outlined in Item 5 of the FDD. Each additional territory generally includes a geographic area with a population of approximately 500,000 people.

While franchisees cannot establish separate Cordova Businesses, they can increase their market reach by acquiring more territories. This expansion comes with increased financial obligations, as the Minimum Quarterly Royalty Fee Requirement and local marketing expenditure will increase with each additional territory. This approach allows Cordova to manage brand consistency and operational standards, as all businesses operate under a single franchise agreement per franchisee, even if multiple territories are covered.

It is important to note that while franchisees can expand their territory, they do not receive an exclusive territory. Cordova retains the right to operate or franchise other businesses, potentially creating competition within a franchisee's operating area. Additionally, Cordova reserves specific rights, including operating Cordova Businesses outside the franchisee's territory and using alternative channels of distribution, which could impact a franchisee's business. Therefore, while the opportunity to add territories exists, franchisees must be aware of the competitive landscape and Cordova's retained rights.