How long is the Post-Term Restricted Period for a Cordova franchise, generally?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
s not own or hold, in the assignee, any direct or indirect ownership and/or equity interest whether legal, equitable or otherwise; (d) if you are an Owner of Franchisee, the date on which you cease to be an Owner of Franchisee; or (e) if you are the Spouse of an Owner of Franchisee, the date on which your Spouse ceases to be an Owner of Franchisee. Provided however, that if a court of competent jurisdiction determines that this period of time is too long to be enforceable, then the "Restricted Period" means the 18 month period after the earliest to occur of the following: (a) the expiration of the Franchise Agreement; (b) the termination of the Franchise Agreement; (c) the date on which Franchisee assigns the Franchise Agreement to another person (other than you or your Spouse or an Immediate Family Member) provided that you do not and your Spouse does not own or hold, in the assignee, any direct or indirect ownership and/or equity interest whether legal, equitable or otherwise; (d) if you are an Owner of Franchisee, the date on which you cease to be an Owner of Franchisee; or (e) if you are the Spouse of an Owner of Franchisee, the date on which you cease to be the Spouse of an Owner of Franchisee.
"Restricted Period" means the 24 month period after the earliest to occur of the following: (a) the expiration of the Franchise Agreement; (b) the termination of the Franchise Agreement; (c) the date on which Franchisee, in compliance with the terms of the Franchise Agreement, assigns the Franchise Agreement to another person (other than you or your Spouse) provided that you do not and your Spouse does not own or hold, in the assignee, any direct or indirect ownership and/or equity interest whether legal, equitable or otherwise;
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the standard post-term restricted period is 24 months. This restriction begins after the earliest of several events: the expiration of the Franchise Agreement, the termination of the Franchise Agreement, or the date the franchisee assigns the Franchise Agreement to another party, provided certain ownership conditions are met. The restriction also applies if the franchisee or their spouse ceases to be an owner of the franchise.
However, the document also states a contingency: if a court deems the 24-month period too long to be enforceable, the restricted period is reduced to 18 months. This alternative period also starts after the earliest of the same events: expiration or termination of the agreement, assignment of the agreement under specified conditions, or the franchisee or their spouse ceasing to be an owner.
This means that after the franchise agreement ends, either by expiration, termination, or assignment, a franchisee is generally restricted from competing with Cordova for either 24 months or 18 months, depending on a court's determination of enforceability. This restriction is in place to protect Cordova's business interests and prevent former franchisees from using the brand's confidential information or business practices to compete against them. Prospective franchisees should be aware of these limitations and consider how they might affect their future business plans after leaving the Cordova system.