When is the initial franchise fee due for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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, Fixtures, and | $3,000 – $30,000 | As arranged | As incurred | Suppliers |
| Equipment (Note 5) | ||||
| Initial Inventory (Note 6) | $100 – $1,000 | As arranged | As incurred | Suppliers |
| Computer, Software, and | $1,000 – $10,000 | As arranged | As incurred | Suppliers |
| Business Management | ||||
| System (Note 7) | ||||
| Work Vehicle (Note 8) | $0 – $8,000 | As arranged | As incurred | Vehicle dealer |
| Start-Up Marketing (Note 9) | $13,000 – $40,000 | As arranged | As incurred | Suppliers |
| Insurance Deposits – | $4,000 – $40,000 | As arranged | As incurred | Insurers |
| Three Months (Note 10) | ||||
| Travel for Initial Training | $2,500 – $12,500 | As arranged | As incurred | Airlines, hotels, |
| (Note 11) | restaurants | |||
| Professional Fees (Note 12) | $1,000 – $25,000 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
| Licenses and Permits (Note 13) | $1,000 – $10,000 | As arranged | As incurred | Government |
| Additional Funds – | $15,000 – $45,000 | As arranged | As incurred | Us, employees, |
| Three Months (Note 14) | suppliers, landlord | |||
| Total Estimate (Note 15) | ||||
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. For a single territory, the initial franchise fee is $40,000. However, if a franchisee elects to increase their operating territory by adding additional territories, the initial franchise fee will range from $70,000 for two territories to $133,000 for five territories.
For a single territory Cordova franchise, the FDD outlines various expenditures that are due at different times. The initial franchise fee is paid as a lump sum when the franchise agreement is signed. Other expenses such as construction and leasehold improvements, lease deposits, utility deposits, furniture, fixtures, equipment, initial inventory, computer software, work vehicle, start-up marketing, insurance deposits, travel for initial training, professional fees, and licenses and permits are all paid as incurred.
Prospective franchisees should note that all fees paid to Cordova are non-refundable. It is important to have sufficient funds available when signing the Franchise Agreement to cover the initial franchise fee. Additionally, franchisees should be prepared to manage ongoing expenses as they are incurred during the initial setup phase.