What does Cordova require regarding minimum insurance coverage?

According to Cordova's 2025 Franchise Disclosure Document, franchisees are required to maintain minimum insurance coverage as designated by Cordova. The FDD indicates that the initial deposit and first three months of premium payments for this insurance are estimated to cost between $4,000 and $40,000. This cost is part of the estimated initial investment for a single territory Cordova business.

Prospective franchisees should consult with their insurance agent before signing the Franchise Agreement to fully understand the types and amounts of coverage required. This will help them budget accurately for this aspect of their initial investment and ongoing operational expenses. The wide range in the estimated cost suggests that insurance requirements may vary significantly based on factors such as location, business size, and specific services offered.

It is important to note that the FDD only provides an estimate for the initial three months of insurance coverage. Franchisees should anticipate that insurance premiums will be an ongoing expense throughout the term of their Franchise Agreement. Understanding the specific insurance requirements is crucial for ensuring compliance and protecting the business from potential liabilities.