What is the purpose of Cordova's ability to unilaterally modify Article 4?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Supplemental Royalty Fees" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
- "Supplemental Royalty Fee Due Date" shall have the meaning defined and set forth in Article 5.B. of this Agreement.
- "Supplemental Training" shall have the meaning defined and set forth in Article 4.A. of this Agreement.
- "Supplemental Training Fee" shall have the meaning defined and set forth in Article 4.A. of this Agreement.
- "System" shall have the meaning defined in the "Recitals" section of this Agreement and is further supplemented, as follows: (a) the Approved Services and Products, System Supplies and the services, procedures and systems that are designated by Franchisor, whether presently or in the future, for use in connection with the development, establishment, marketing, promotion and operation of a Cordova Business; (b) the Licensed Marks; (c) the Trade Dress; (d) Copyrights, (e) other trade names, service marks, signs, and logos, copyrights and trade dress that is designated by Franchisor, whether presently or in the future, for use in connection with the development, establishment, marketing, promotion and operation of a Cordova Business; (f) Operations Manual; (g) Business Management System Data; (h) Know-How; (i) Confidential Information; and (j) Digital Media. All determinations as to the system including components to the system and modifications and replacements thereto shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
- "System Supplies" means the equipment and supplies designated by Franchisor as required for use in connection with Franchisee's Cordova Business and the Approved Services and Products. Without limitation to the foregoing, the System Supplies shall include System branded, non-branded and third party branded equipment and supplies designated by Franchisor for use in the day-to-day operations of Franchisee's Cordova Business including, among other things: software, systems, products, supplies, equipment, and other products designated by Franchisor in the Operations Manual and/or otherwise in writing and, as may be modified and supplemented by Franchisor from time to time in Franchisor's Reasonable Business Judgment. System Supplies shall further include those products that Franchisor authorizes for sale to clients of Franchisee's Cordova Business.
- "System Website" means the web page and pages located on the world wide web at the www.cordovafranchising.com domain and shall further include all webpages and subdomains including, those that are franchisee and/or geography specific, that are a part of www.cordovafranchising.com, or as designated by Franchisor being associated with the URL of www.cordovafranchising.com and/or Cordova Businesses.
"Technology Fee" shall have the meaning defined and set forth in Article 5.C. of this Agreement.
"Term" means the period of time set forth and defined in Article 2.B. of this Agreement and the applicable Renewal Term, if any, if Franchisee invokes Franchisee's renewal rights in accordance with the terms of this Agreement.
"Territory" means a geographic area, as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment.
"Trade Dress" means the Cordova Business designs, images, marketing materials, packaging, branding and/or branding images which Franchisor authorizes and requires Franchisee to use in connection with the operation of the Franchised Business and as may be revised and further developed by Franchisor from time to time.
"Training Program" shall have the meaning defined and set forth in Article 4.A.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
Based on the 2025 Cordova Franchise Disclosure Document, Article 4 pertains to intellectual property, brand protection, and non-competition covenants. Cordova retains the right to modify the System, including components and modifications, based on their reasonable business judgment. This includes designating required equipment, supplies, and branded products for the franchisee's Cordova Business operations, as detailed in the Operations Manual or other written communications. These System Supplies may be modified and supplemented by Cordova from time to time based on their reasonable business judgment.
Cordova's ability to modify Article 4 unilaterally allows them to adapt the franchise system to changing market conditions, protect their brand, and maintain consistency across all franchise locations. This ensures that all franchisees operate under a unified standard and that the brand's reputation is upheld. The modifications can include changes to approved services and products, system supplies, and other elements critical to the Cordova Business.
For a prospective franchisee, this means that the specific products, services, and operational procedures they initially invest in may change over time. While Cordova states that these changes will be made in their reasonable business judgment, franchisees should be aware that they may be required to adopt new systems, purchase different supplies, or modify their business practices to comply with these changes. It is important for potential franchisees to understand the scope of these potential modifications and how they might impact their business operations and profitability.
Furthermore, the FDD highlights that failure to comply with Article 4 can result in irreparable harm to Cordova and its franchisees, potentially leading to injunctive relief. This underscores the importance of adhering to the franchisor's guidelines and modifications to protect the brand and maintain a consistent operational standard across all locations. Prospective franchisees should carefully review Article 4 and discuss any concerns with Cordova before entering into the franchise agreement.