What is the Payment Non-Compliance fee for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, a franchisee may incur a Payment Non-Compliance fee of $150 per occurrence. This fee is charged if a franchisee fails to make payments to Cordova on time as required by the Franchise Agreement. The fee is due within 14 days of the invoice date. In addition to the Payment Non-Compliance fee, the franchisee is also responsible for paying interest, costs, and legal fees associated with the late payment.
This fee is designed to encourage franchisees to adhere to the payment schedule outlined in the Franchise Agreement. Franchisees should ensure they have sufficient funds and proper payment methods in place to avoid incurring this fee. The Payment Non-Compliance fee is in addition to any interest charged on the overdue amount, which is set at 18% per annum from the due date.
It is important for prospective Cordova franchisees to understand all the fees associated with the franchise, including the Payment Non-Compliance fee. By understanding these fees, franchisees can better manage their finances and avoid unnecessary expenses. Payment compliance is critical to maintaining a good relationship with Cordova and avoiding potential penalties.