When is the Cordova initial franchise fee due?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
">A. Single Territory
| Type of Expenditure | Amount | When Due | To Whom Payment is Made | |
|---|---|---|---|---|
| Initial Franchise Fee | $40,000 | Lump sum | When Franchise | Us |
| (Note 1) | Agreement is signed | |||
| Construction and Leasehold | $5,000 – $10,000 | As arranged | As incurred | Contractors, suppliers, |
| Improvements (Note 2) | and/or landlord | |||
| Lease Deposits – Three | $8,000 – $16,000 | As arranged | As incurred | Landlord |
| Months (Note 3) | ||||
| Utility Deposits (Note 4) | $400 – $4,000 | As arranged | As incurred | Utility suppliers |
| Furniture, |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the initial franchise fee is due when the Franchise Agreement is signed. The initial franchise fee for a single territory is $40,000. However, if a franchisee elects to increase the size of their operating territory by adding additional territories, the total initial franchise fee will range from $70,000 for two territories to $133,000 for five territories.
Prospective Cordova franchisees should note that all initial fees are non-refundable, and Cordova does not finance any portion of these initial fees. This means franchisees must have the full amount of the initial franchise fee available at the time of signing the agreement. This is a fairly standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial training and support.
It is important for potential franchisees to carefully consider the size of the territory they wish to operate in, as this will directly impact the initial franchise fee. While expanding the territory may offer greater potential for revenue, it also requires a larger upfront investment. Franchisees should also factor in other initial investment costs, such as construction and leasehold improvements, lease deposits, and utility deposits, which are due as incurred.