What are the requirements for operating a Cordova Business?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
nd as otherwise disclosed in Exhibit I to this Disclosure | | | | Document. | | | | Business; timely develop and open your Cordova | | | | Business; | | | | operate | | | | your | | | | Cordova | | | | Business | | | | in | | | | accordance | | | | with | | | | the | | | | specifications, standards, and requirements set forth in our | | | | Manuals; develop or operate your Cordova | | | | Business in | | | | compliance with all federal, state, and local laws, rules, and | | | | regulations, unless, such violation poses a threat to public health | | | | or safety; maintain insurance coverage that we require; comply | | | | with our standards, systems or specifications as we may designate | | | | or as otherwise designated in the operations manual; fail to | | | | operate your Cordova | | | | Business in conformity with our System or | | | | otherwise violate the Franchise Agreement, except as to events of | | h. "Cause" defined-non-curable defaults | 16.A.(1), 16.A.(2) | The following are defaults that cannot be cured: three or more instances where you commit a curable default, whether or not you timely cured such default in each instance; you intentionally and knowingly refuse to comply with the terms of the Franchise Agreement, and/or the standards specifications, and/or requirements set forth in the operations manual and/or as communicated to you by us from time to time; you intentionally, knowingly, or negligently operate the Franchised Business in violation of applicable laws, rules, and regulations and, in doing so, create a foreseeable, imminent, and/or immediate threat to the health and safety of others; you abandon the Franchised Business; you or your Owners intentionally made a material statement or omission in questionnaires submitted to us; the data, information, and/or records that you record and/or submit to us are intentionally misleading or false; you transfer or attempt to transfer the Franchised Business or the ownership interests in your franchise company without our approval; you disclose or permit the disclosure of information contained in the operations manual and/or of confidential information; you or your Owners engage in intentionally dishonest or unethical conduct that impacts our System; you and/or your Owners breach and, if such breach is capable of a cure, fail to timely cure another agreement with us, including the Owner and Spouse Agreement and Guaranty; you and your Owners and managers fail to complete, to our satisfaction, our initial and on-going training programs; you fail to notify us of the misuse of confidential information and you fail to protect same; you misappropriate or misuse the Licensed Marks; you are deemed insolvent, make an assignment for the benefit of creditors, admit in writing your inability to pay debts; are adjudicated bankrupt, file a voluntary bankruptcy petition or have one filed against you, and/or you acquiesce to the appointment of a trustee or receiver, or a court orders one; execution is levied against the Franchised Business; a final judgment is entered against the Franchised Business and is not satisfied within 30 days; you are dissolved; a lawsuit or action is commenced against the Franchised Business to foreclose on a lien on equipment of the Franchised Business and such action is not dismissed after 60 days; real or personal property used by the Franchised Business is sold or levied by a sheriff or other law | |-----------------------------------------------|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
enforcement officer; and/or you abandon or fail to continuously
own and operate the Franchised Business.
| i. | Franchisee's obligations on termination/non-renewal | 6, 17 | You must: pay all sums that you owe to us under the Franchise Agreement and all other agreements with us; cease owning and operating the Franchised Business; cease representing yourself as a franchisee of ours; permanently cease using and/or accessing the System, the Licensed Marks, our confidential information, the Manuals, the Business Management System, the Business Management System Data, and the System Supplies; return the Manuals and all confidential information to us in the original form provided to you and document the destruction of all electronic files related to same; completely de-identify the location and/or facility associated with the Franchised Business; as requested by us, transfer to us all data, telephone listings, digital media, accounts, web listings and websites associated with the Franchised Business; and abide by the post-termination non competition covenants and restrictions.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–37)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees must adhere to specific operational standards and legal requirements. Franchisees are obligated to develop and open their Cordova business and operate it according to the specifications, standards, and requirements detailed in Cordova's manuals. This includes compliance with all federal, state, and local laws, rules, and regulations, unless a violation poses a threat to public health or safety. Franchisees must also maintain the insurance coverage that Cordova requires and adhere to the standards, systems, or specifications designated by Cordova in its operations manual.
Failure to operate the Cordova business in conformity with Cordova's system or any violation of the Franchise Agreement can lead to termination, especially if the defaults are not curable. Non-curable defaults include intentionally refusing to comply with the Franchise Agreement or operations manual, operating the franchised business in violation of applicable laws creating a threat to health and safety, abandoning the franchised business, making intentional misstatements to Cordova, transferring the franchise without approval, or misusing Cordova's licensed marks. Franchisees must also avoid involvement in any competitive business and comply with confidentiality, non-disclosure, and non-solicitation covenants during the term of the franchise.
Upon termination or non-renewal of the franchise agreement, franchisees have several obligations. They must pay all sums owed to Cordova under the Franchise Agreement and any other agreements. Franchisees must cease operating the franchised business and representing themselves as a Cordova franchisee. They are required to stop using the System, Licensed Marks, confidential information, Manuals, Business Management System, Business Management System Data, and System Supplies. All manuals and confidential information must be returned in their original form, and electronic files related to them must be destroyed. The location associated with the franchised business must be completely de-identified, and as requested by Cordova, all data, telephone listings, digital media, accounts, web listings, and websites associated with the franchised business must be transferred to Cordova. Franchisees must also abide by post-termination non-competition covenants and restrictions.