Is the initial franchise fee for a Cordova franchise refundable?
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, except, as described below.
Veteran's Discount
For qualified individuals who were honorably discharged from any branch of the United States Military we offer a 10% discount off of the Initial Franchise Fee for your first Franchise Agreement. This discount must be requested at the time of your initial franchise application and requires documented military service. This discount cannot be combined with other discounts of the Initial Franchise Fee.
Conversion of Existing Business Discount
For qualified individuals who we determine have a business that provides comparable services that we offer, including recruitment and staffing services, and related products and services ("Cordova Conversion Business") the Initial Franchise Fee for your first Franchise Agreement will be discounted by $20,000. The discount must be requested at the time of signing the Franchise Agreement and represents a one-time discount applicable to only the Initial Franchisee Fee for one Franchise Agreement. This discount is subject to our approval of franchisee entering into our franchise system. You must provide documentation, which may include financial records, that we, in our sole discretion, deem appropriate to evaluate your Cordova Conversion Business. This discount cannot be combined with other discounts of the Initial Franchise Fee.
Multi-Territory and Multi-Franchise Discounts
Subject to market type, availability, and our discretion, at the time of signing your Franchise Agreement, you may request the right to purchase additional territories (each referred to as an "Additional Territory") to be added to your Operating Territory and operated under one Franchise Agreement. Each Additional Territory will be comprised of a population of approximately 500,000 people.
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 not refundable. The standard initial franchise fee is $40,000 for a territory with a population of approximately 500,000 people. Cordova states that this fee is fully earned upon payment, meaning that once the franchisee pays the initial fee, Cordova is not obligated to return it, regardless of whether the franchise opens or succeeds. This is a common practice in franchising, as the initial fee compensates the franchisor for the initial costs of granting the franchise, including training, territory analysis, and administrative expenses.
Cordova does offer certain discounts on the initial franchise fee under specific conditions. Qualified veterans receive a 10% discount, and individuals converting an existing comparable business may receive a $20,000 discount. However, the FDD clearly states that these discounts cannot be combined, and they must be requested at the time of the initial franchise application or when signing the Franchise Agreement. These discounts are subject to Cordova's approval and may require documentation to verify eligibility.
For franchisees interested in acquiring multiple territories, Cordova offers a tiered discount structure. For example, purchasing two territories results in an initial franchise fee of $35,000 per territory, totaling $70,000. The per-territory fee decreases as more territories are purchased, up to five territories, where the fee is $26,600 per territory, totaling $133,000. These discounts are only applicable for Franchise Agreements signed at the same time. Despite these potential discounts, the initial franchise fee remains non-refundable, regardless of the number of territories purchased or any discounts applied.