To whom do Cordova franchisees pay the Quality Assurance Audit Fees?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Quality Assurance Audit Fees Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees on-going weekly, monthly, and/or per use fees related to quality assurance programs designated by Franchisor related to periodic inspections of Franchisee's Cordova Business and secret shopper evaluations.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees are required to pay Quality Assurance Audit Fees to either Cordova (the Franchisor), Cordova's affiliates, or Cordova's designees. These fees are ongoing and may be charged weekly, monthly, or per use. They are related to quality assurance programs that Cordova designates, which include periodic inspections of the franchisee's Cordova business and secret shopper evaluations.
This means that a prospective Cordova franchisee should be prepared to remit these fees to one of three potential recipients, as determined by Cordova. The fees are not fixed to a single entity, allowing Cordova flexibility in how it manages its quality assurance program and collects associated fees.
The fact that these fees are ongoing and can be charged with varying frequency (weekly, monthly, or per use) suggests that the cost can fluctuate depending on Cordova's quality assurance activities and the franchisee's performance. Franchisees should budget accordingly and maintain high operational standards to potentially minimize the frequency or impact of these fees. It is important for prospective franchisees to clarify with Cordova the typical frequency and estimated cost of these audits to better understand the financial implications.