Are Cordova franchisees required to comply with wage and hour laws?
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.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees must comply with all applicable laws and regulations related to their employees. Specifically, Cordova franchisees are required to investigate, review, and comply with all laws, rules, and regulations related to client and employee privacy obligations and protections, information and data, and solicitations. This requirement extends to all laws, rules, and regulations related to these areas.
This means that franchisees are responsible for understanding and adhering to federal, state, and local labor laws, including those governing minimum wage, overtime pay, employee classification, and record-keeping. Failure to comply with these laws can result in significant penalties, including fines, back wage claims, and legal action. Cordova franchisees must stay informed about changes in employment laws and implement policies and procedures to ensure compliance.
Furthermore, the FDD emphasizes the franchisee's responsibility to immediately notify Cordova in writing of any legal issues or notices of violation related to any law, ordinance, code, permit, or regulation. This requirement underscores the importance of franchisees maintaining a proactive approach to legal compliance and promptly addressing any potential issues that may arise. Cordova's proactive approach helps protect both the franchisee and the overall brand reputation.