What is the significance of Cordova not having franchised for three years or more?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
Cordova Franchising, LLC, the franchisor of the Franchised Business, is referred to in this disclosure document (the "Disclosure Document") as "we", "us" or "our" as the context requires. A franchisee is referred to in this Disclosure Document as "you" and "your" as the context requires. If you are a limited liability company, partnership or other legal entity (a "Corporate Entity"), our Franchise Agreement will also apply to your individual owners, shareholders, members, officers, directors, other principals, and their respective spouses.
The Franchisor
We are a Nebraska limited liability company established on February 6, 2025. Our principal business address is 6767 Maple Street, Omaha, Nebraska 68104. We conduct business under our corporate name, Cordova Franchising, LLC and Cordova. Our business is operating Cordova franchise system and granting franchises to third parties like you to develop and operate a Franchised Business. We began offering franchises as of May 30, 2025. Other than as discussed above, we are not in any other business, we have not conducted business in any other line of business, we do not conduct or operate a Franchised Business of the type to be operated by a franchisee, and we have not offered or sold franchises in any other line of business. We do not have any predecessors and we do not have any parent company. Our registered agents for service of process are disclosed in Exhibit B of this Disclosure Document.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the company was established on February 6, 2025, and began offering franchises as of May 30, 2025. This indicates that Cordova is a newly established franchise system.
Since Cordova began offering franchises in May 2025, the company would not have any history of franchise operations extending back three fiscal years. This is not inherently negative, but prospective franchisees should be aware that there is limited historical data available regarding franchise performance, terminations, or non-renewals.
Given the limited operating history, it is crucial for potential Cordova franchisees to conduct thorough due diligence. This includes carefully reviewing the FDD, speaking with existing franchisees (if any exist), and seeking professional advice from experienced franchise consultants, attorneys, and accountants to fully understand the risks and opportunities associated with investing in a new franchise system like Cordova.