What specific costs can Cordova include when calculating transfer fees?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
sor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the transfer fee is a fixed sum of $20,000. In addition to this fee, the transferee is responsible for the expenses associated with improving, modifying, refurbishing, renovating, remodeling, and/or upgrading the Administrative Office to meet Cordova's current standards and specifications. These upgrades must be completed within a timeframe specified by Cordova.
Furthermore, the transferee must cover the costs for themselves, their Managing Owner, managers, and any other relevant employees to complete any training programs that Cordova requires. The transferee is also responsible for their own expenses.
In addition to the $20,000 transfer fee, a prospective Cordova franchisee should be aware of the potential costs associated with upgrading the Administrative Office and completing required training programs, as these expenses are borne by the transferee.