How is the Cordova Supplemental 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 Supplemental Royalty Fee is paid on the 15th of the month following the end of each calendar year quarter. Cordova will automatically debit the fee from the franchisee's bank account through ACH or other means designated by Cordova.
The Supplemental Royalty Fee is the difference between the Minimum Quarterly Royalty Fee Requirement and the aggregate amount of Royalty Fees paid during the respective calendar year quarter. The franchisee is required to sign an ACH Authorization Form, which permits Cordova to electronically debit the designated bank account for payment of all fees.
Cordova requires franchisees to deposit the Gross Sales of their Cordova Business into designated bank accounts that are 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 paying all service charges and fees charged by their bank to allow Cordova to electronically debit their bank account.