Who can be members of the council for the Cordova Brand Development Fund?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that the Brand Development Fund may be used to pay various costs and expenses of Franchisor for such reasonable salaries, wages, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration, activities and/or the brand awareness goals of the Brand Development Fund including expenses incurred by Franchisor for advertising, advertising councils, franchisee advisory councils, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Business Management Systems, upgrades to the System Website, development of Digital Media and creative development that is internally administered or prepared by Franchisor and other marketing activities made by Franchisor, provided, however, that salary expenses for Franchisor's personnel paid by the Brand Development Fund shall be commensurate with the amount of that time spent by such personnel on Brand Development Fund matters.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Cordova states that the Brand Development Fund may be used to pay for expenses incurred by Cordova for advertising councils and franchisee advisory councils. However, the FDD does not specify who can be members of these councils.
As the FDD lacks specific details on council membership, prospective franchisees should seek clarification from Cordova regarding the selection process, eligibility criteria, and responsibilities of council members. Understanding the composition and operation of these councils is crucial for franchisees who wish to participate in brand development and contribute to the strategic direction of advertising and marketing efforts.
It is common in franchising for franchisors to establish advisory councils composed of franchisees to provide input on various aspects of the business, including marketing and brand development. However, the exact structure and membership criteria can vary significantly between franchise systems. Therefore, direct inquiry with Cordova is essential to gain a comprehensive understanding of how these councils function within the Cordova franchise system.