How is the Cordova Royalty fee paid?
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 is 10% of Gross Sales and will be automatically debited from the franchisee's bank account monthly. The Gross Sales include the total dollar sales from all business and clients of your Cordova Business. Gross Sales do not include (a) sales taxes that you collect and remit to the proper taxing authority, and (b) authorized promotional discounts that you provide to clients.
Cordova franchisees are required to sign an ACH Authorization Form, which permits Cordova to electronically debit the franchisee's designated bank account for payment of all fees. Franchisees must deposit the Gross Sales of their Cordova Business into designated bank accounts that are subject to Cordova's ACH authorization.
In addition to the standard royalty fee, Cordova also requires a minimum quarterly royalty fee. If the aggregate amount of the Royalty Fees paid by you and received by us from your Cordova Business during the respective calendar year quarter does not equal or exceed the aggregate amount of your Minimum Quarterly Royalty Fee Requirement for each calendar year quarter, then you must pay to us the difference as a supplemental royalty fee. This supplemental royalty fee will also be debited automatically from your bank account by ACH or other means designated by Cordova.