What is the Reporting Non-Compliance fee for a Cordova franchise?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Reporting Non-Compliance fee is $150 per occurrence. This fee is charged if a franchisee fails to submit Royalty and Activity Reports, as well as other required reports and financial statements, in a timely manner as stipulated in the Franchise Agreement.
The fee is due within 14 days of the invoice date. This means that Cordova franchisees must ensure they submit all required reports on time to avoid incurring this additional cost.
Franchisors typically impose such fees to ensure compliance with reporting requirements, which are essential for monitoring the financial health and performance of the franchise system. By charging a non-compliance fee, Cordova incentivizes franchisees to adhere to the reporting schedule and maintain accurate records. Failing to pay this fee can also result in additional penalties, such as interest on overdue amounts.