How is the population determined for a Cordova territory?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
The scope of your Operating Territory will vary from the scope and size of the operating territories of other franchisees in our System depending on local factors, market conditions, and the number of Territories that you purchase at the time of signing your Franchise Agreement. A Territory, generally, will consist of a geographic area that includes a population of approximately 500,000 people. Subject to availability, our approval, and payment of additional Initial Franchise Fees identified in Item 5 of this Disclosure Document, you may add Additional Territories. Each Additional Territory will consist of a geographic area that includes a population of approximately 500,000 people. Population is determined in the aggregate and will be calculated based on raw data and without
regard to demographics or age. Your Minimum Quarterly Royalty Fee Requirement and local marketing expenditure will increase if you add Additional Territories.
Source: Item 12 — TERRITORY (FDD pages 28–30)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, a territory generally consists of a geographic area with a population of approximately 500,000 people. The determination of this population is done in the aggregate, meaning it's a total count without considering specific demographics or age ranges within that area. This approach provides a broad measure of the potential customer base within a territory.
For a prospective Cordova franchisee, this means the territory's potential is evaluated purely on the number of residents, not on factors like income level, age distribution, or other demographic characteristics. Cordova does not adjust the population figure based on the specific makeup of the community. This could be beneficial if the territory has a large population, regardless of other factors.
However, it's important to note that Cordova's method of determining population without regard to demographics or age could present risks. A territory with 500,000 residents might not be as profitable as one would expect if a significant portion of the population is not the target customer for Cordova's services. Therefore, a prospective franchisee should conduct their own market research to assess the viability of the territory, considering demographic factors that Cordova does not account for in its initial assessment.
Furthermore, the FDD states that the scope of the Operating Territory will vary from the scope and size of the operating territories of other franchisees depending on local factors and market conditions. A prospective franchisee should inquire about how Cordova assesses these local factors and market conditions when determining the territory size and population, and how these factors might impact the franchisee's potential customer base and profitability.