When is the Cordova Royalty fee due?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Royalty (Notes 2 and 3) | 10% of Gross Sales | Monthly as designated by us | Will be debited automatically from your bank account by ACH or other means designated by us. See, Notes 2 and 3 for Minimum Quarterly Royalty Fee Requirement. |
| Supplemental Royalty (Notes 2 and 3) | Varies depending on satisfaction of Minimum Quarterly Royalty Fee Requirements | On 15th of the month following the end of each calendar year quarter | Will be debited automatically from your bank account by ACH or other means designated by us. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the royalty fee, which is 10% of Gross Sales, is due monthly as designated by Cordova. These payments will be automatically debited from the franchisee's bank account through ACH or other means designated by Cordova. Franchisees are also subject to Minimum Quarterly Royalty Fee Requirements, and if the aggregate royalty fees paid during a calendar year quarter do not meet this minimum, a Supplemental Royalty Fee is due. This supplemental fee is due on the 15th of the month following the end of each calendar year quarter and will also be debited automatically.
Cordova requires franchisees to deposit Gross Sales into designated bank accounts subject to ACH authorization. Franchisees must also install and use pre-authorized payment, point-of-sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems that Cordova designates. Franchisees are responsible for all service charges and fees charged by their bank to allow Cordova to electronically debit their account.
In summary, Cordova franchisees must be prepared for recurring monthly royalty fee deductions, with a potential supplemental payment each quarter if minimums are not met. They must also adhere to Cordova's specified banking and payment processing systems, bearing any associated costs. This level of control over payment processing is not uncommon in franchising, as it ensures timely and accurate collection of royalties.