When is the Operations Non-Compliance fee due for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Operations Non-Compliance fee is due 14 days from the date of the invoice. This fee ranges from $450 to $1,000 per occurrence. Cordova charges this fee if a franchisee fails to comply with the operational standards outlined in the Franchise Agreement. In addition to the fee, the franchisee is responsible for covering any inspection and re-inspection costs that Cordova incurs as a result of the non-compliance.
This means that if Cordova determines a franchisee is not meeting operational standards, they will issue an invoice for the non-compliance, including the fee and any associated inspection costs. The franchisee then has 14 days to pay the invoiced amount. Failing to pay within this timeframe could potentially lead to additional penalties, such as late payment fees or interest charges, as outlined elsewhere in the FDD.
It is important for prospective Cordova franchisees to carefully review the operational standards detailed in the Franchise Agreement to understand what is expected of them. Maintaining compliance with these standards is crucial to avoid incurring these potentially significant Operations Non-Compliance fees. Franchisees should also factor in the potential for these fees, as well as inspection costs, when budgeting for their business operations.