Is Cordova required to approve alternative suppliers proposed by a Cordova franchisee?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
marketing materials and Digital Media that may be used to market the Franchised Business; and
- (7) Establishing and communicating System standards and requirements in the form of the Operations Manual and, as Franchisor, in Franchisor's sole discretion.
4.C. OPERATIONS MANUAL
Franchisor shall provide Franchisee with access to the Operations Manual. The Operations Manual contains, as designated and determined by Franchisor, mandatory and, as applicable, suggested specifications, standards and operating procedures that Franchisor prescribes for Cordova Businesses. Franchisee shall operate the Franchised Business in strict accordance with the standards, specifications, and requirements set forth in the Operations Manual as, such standards, specifications, and requirements including, but not limited to, the Approved Services and Products, System Supplies, and, authorized and designated suppliers, as of the Effective Date of this Agreement, and, as they may be supplemented, modified, changed, and/or replaced in the future and, from time to time, by Franchisor, in Franchisor's Reasonable Business Judgment. Franchisee shall keep and maintain the confidentiality of the Operations Manual and shall keep and maintain all files, data and information contained in the Operations Manual in a secure location and/or in a protected confidential state and, as otherwise directed by Franchisor. The master copy and official version of the Operations Manual is and shall be the copy and/or version maintained and designated by Franchisor in Franchisor's ordinary course of business.
Franchisor shall provide Franchisee with reasonable notice of modifications and changes made to the Operations Manual and, such notice may take form of electronic communications including emails and, if the Operations Manual is maintained on an online web based platform, notifications within said platform. Franchisor shall provide Franchisee with a reasonable period of time, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, to implement change and modifications to the as set forth in the Operations Manual. Without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products and utilize the System Supplies as designated by Franchisor, in Franchisor's Reasonable Business Judgment, in the Operations Manual and, in accordance with the terms, specifications and requirements set forth in the Operations Manual and as Franchisor may supplement and modify the Operations Manual from time to time or, as Franchisor may otherwise designate in writing.
ARTICLE 5 FEES
5.A. INITIAL FRANCHISE FEE
Upon execution of this Agreement Franchisee shall pay to Franchisor a non-recurring initial franchisee fee (the "Initial Franchise Fee") of $40,000 for an Operating Territory comprising a single Territory.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to the 2025 Cordova FDD, franchisees must operate their franchised business in strict accordance with the standards, specifications, and requirements set forth in the Operations Manual. This includes utilizing only the Approved Services and Products, System Supplies, and authorized and designated suppliers as specified by Cordova. These standards, specifications, and requirements are subject to change by Cordova in the future, based on their reasonable business judgment.
Cordova retains the right to modify the Operations Manual and will provide franchisees with reasonable notice of these changes, potentially through electronic communications or notifications on an online platform. Franchisees are expected to implement these changes within a reasonable period of time, as determined by Cordova. Franchisees are explicitly limited to offering and selling only the Approved Services and Products and using only the System Supplies designated by Cordova in the Operations Manual.
In cases where Cordova's prior approval is required and no specific method or timing is outlined, franchisees must request approval in writing. Cordova is then required to respond within 10 business days after receiving the written request and all supporting documentation. However, if Cordova does not respond within this timeframe, the request is considered unapproved. This process applies to situations where a franchisee might seek approval for something not already covered in the Operations Manual, but it does not explicitly address the process or criteria for proposing alternative suppliers.
While the FDD excerpts detail the requirements for using designated suppliers and the process for seeking approval for other matters, it does not specifically outline the procedure or criteria for a franchisee to propose alternative suppliers. A prospective franchisee should seek clarification from Cordova regarding the process and conditions under which alternative suppliers might be considered and approved.