Is a Cordova Operating Manager required to own equity in the franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
You may hire a manager to assume responsibility for the daily management and supervision of the Franchised Business, only if: (a) the manager meets all of our minimum standards and criteria for managers; (b) the manager completes our initial training program; (c) the manager signs our confidentiality and non-competition agreements; and (d) the manager agrees, in writing, to assume responsibility for the on-site management and supervision of the Franchised Business (an "Operating Manager"). All of your employees and other agents and representatives who may have access to our confidential information must sign a confidentiality agreement. We do not require that the Operating Manager own any equity interest in the franchise.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 32)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, an Operating Manager is not required to own equity in the franchise. The franchisee can hire a manager to handle the daily operations, provided the manager meets Cordova's standards, completes the initial training program, signs confidentiality and non-competition agreements, and agrees in writing to take responsibility for on-site management.
This policy provides flexibility for Cordova franchisees who may not want to be involved in the day-to-day operations themselves. It allows them to hire a qualified individual to manage the business while still retaining ownership and overall control. However, the franchisee remains responsible for ensuring the Operating Manager meets all of Cordova's requirements and adheres to the franchise agreement.
While Cordova does not require equity, it is worth noting that some franchise systems do incentivize managers with equity or profit-sharing to align their interests with the success of the business. A prospective Cordova franchisee might consider discussing potential incentive structures with their Operating Manager to motivate performance, even though it is not mandated by the franchise agreement.