Does Cordova grant exclusive territories to franchisees?

According to Cordova's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Cordova grants franchisees an "Operating Territory," franchisees may face competition from other franchisees, outlets that Cordova owns, or other channels of distribution or competitive brands that Cordova controls. However, Cordova states that, during the term of the Franchise Agreement, provided the franchisee is not in default, Cordova will not open or grant another franchisee the right to open a Cordova Business within the franchisee's Operating Territory.

Cordova retains significant rights within a franchisee's territory. Cordova can engage in activities such as operating or franchising Cordova businesses outside the franchisee's Operating Territory, irrespective of proximity. They can also affiliate with other businesses, even those offering similar services, within the franchisee's territory, as long as they do not use Cordova's Licensed Marks. Cordova also reserves the right to use alternative channels of distribution, like the internet or telemarketing, to make sales within the franchisee's territory, without compensating the franchisee.

Furthermore, Cordova may establish a Corporate Accounts Program and service those accounts within a franchisee's territory, or authorize other franchisees to do so, especially if the franchisee declines to participate in the program. These corporate accounts will be serviced at rates negotiated and determined by Cordova. Franchisees must operate and market their Cordova Business exclusively within their assigned Operating Territory, although they can place candidates from outside their territory with clients inside their territory, subject to fee-splitting rules. Franchisees are restricted from directly soliciting clients outside their Operating Territory and from using other distribution channels to make sales outside their territory.