When is the initial franchise fee considered fully earned by Cordova?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement
When you sign a Franchise Agreement you must pay to us a non-refundable initial franchise fee (the "Initial Franchise Fee"). The Initial Franchise Fee is $40,000 for a geographic area that operates as a single territory with a population of approximately 500,000 people (each a "Territory"). The Initial Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises that we offer under this Disclosure Document, exce
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned by Cordova upon payment. The standard initial franchise fee is $40,000 for a territory with a population of approximately 500,000 people. This fee is non-refundable.
Cordova does offer discounts on the initial franchise fee under certain conditions. Qualified veterans receive a 10% discount, and individuals with existing comparable businesses may receive a $20,000 discount. However, these discounts cannot be combined.
For franchisees interested in securing multiple territories, Cordova offers discounted initial franchise fees for each additional territory purchased, with the discount increasing as more territories are acquired. For example, purchasing two territories results in a fee of $35,000 per territory, totaling $70,000. The discounts for multiple territories also apply if a franchisee signs multiple franchise agreements at the same time, subject to market conditions and Cordova's discretion.