What is the role of the council established for the Cordova Brand Development Fund?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor, in Franchisor's Reasonable Business Judgment, may establish a council to provide guidance respecting the administration of the Brand Development Fund and marketing matters concerning the Brand Development Fund.
The council shall only serve in an advisory capacity and Franchisor shall select members of the council which may be comprised of employees of Franchisor, Franchisor, franchisees of the System and third parties.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, Cordova may establish a council to provide guidance regarding the administration of the Brand Development Fund and marketing matters related to the fund. However, this council serves only in an advisory capacity.
The members of the council are selected by Cordova and may include Cordova employees, Cordova franchisees, and third parties. This structure allows Cordova to gather input from various perspectives, but ultimately, Cordova retains control over the Brand Development Fund's administration and marketing strategies.
As the council is purely advisory, franchisees should not expect to have direct decision-making power over the Brand Development Fund. While franchisees may be selected to serve on the council, their role is limited to providing guidance, and Cordova is not obligated to follow the council's recommendations. This arrangement is fairly common in franchising, where franchisors typically maintain control over brand standards and marketing efforts to ensure consistency across the system.