What is the range of the Operations Non-Compliance fee 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 ranges from $450 to $1,000 per occurrence. This fee is payable if a franchisee fails to comply with the operational standards outlined in the Franchise Agreement. In addition to the fee itself, the franchisee is also responsible for covering any inspection and re-inspection costs that Cordova incurs as a result of the non-compliance. The fee is due within 14 days of the invoice date.
This fee serves as a financial deterrent to ensure that Cordova franchisees adhere to the brand's operational standards. These standards are put in place to maintain consistency and quality across all franchise locations, which ultimately protects the brand's reputation and customer experience. By charging a non-compliance fee, Cordova incentivizes franchisees to correct any operational deficiencies promptly.
For a prospective franchisee, it's crucial to thoroughly understand Cordova's operational standards and ensure they have the resources and systems in place to meet these requirements. Failure to do so could result in incurring these non-compliance fees, which can impact profitability. It would be prudent to ask existing franchisees about their experiences with operational compliance and any challenges they faced in meeting Cordova's standards.