Can Cordova implement a Brand Development Fund Fee in the future?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4: Brand Development Fund – The brand development fund fee is a continuing monthly fee equal to an amount of up to 2% of your monthly Gross Sales (the "Brand Development Fund Fee"). Currently we do not charge a Brand Development Fund Fee but reserve the right to implement one at any time in the future.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, Cordova currently does not charge a Brand Development Fund Fee. However, Cordova retains the right to implement this fee at any point in the future. If implemented, the Brand Development Fund Fee could be up to 2% of the franchisee's monthly Gross Sales. This fee would be collected monthly, as designated by Cordova, and debited automatically from the franchisee's bank account.
Currently, Cordova franchisees must spend a minimum of $1,000 per territory each month on local marketing initiatives. If Cordova implements a Brand Development Fund Fee, this would be in addition to the franchisee's local marketing obligations.
It is important for prospective franchisees to understand that while the Brand Development Fund Fee is not currently assessed, Cordova has the contractual right to implement it. Franchisees should factor this potential expense into their financial projections and business planning. They may also want to inquire with Cordova about the circumstances under which the fee might be implemented and how the funds would be used to benefit franchisees.