When is the initial franchise fee for a Cordova franchise due?
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 |
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, this 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.
This means that a prospective Cordova franchisee must have the full initial franchise fee amount available at the time of signing the agreement. This fee is non-refundable, so it's crucial to carefully consider the decision before signing. The initial franchise fee is a one-time payment, but franchisees should also be aware of other ongoing fees and costs associated with operating the franchise.
It is important to note that Cordova does not finance any portion of the initial fees. Therefore, the franchisee is responsible for securing the necessary funds through their own means, such as savings, loans, or investors. Understanding the payment terms and financial obligations is a critical part of the due diligence process for any potential franchisee.