What are 'System Supplies' that a Cordova franchisee must maintain an inventory of?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
her us or our designated supplier:
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- System Supplies You must maintain an initial and ongoing inventory of System Supplies. You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.
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- Branded Items and Marketing Materials All materials bearing the Licensed Marks including, but not limited to, stationary, business cards, brochures, apparel, signs and displays, must meet our standards and specifications and must be purchased from us directly or our designated suppliers. All of your marketing materials must comply with our standards and specifications and must be approved by us before you use them. You may market your Cordova Business through approved digital media and social media platforms provided that you do so in accordance with our digital media and social media policies. You must purchase all branded marketing materials from either us or our designated exclusive supplier. We may require that you exclusively use, at your cost, our designated supplier for social and digital media marketing services and exclusively use, at your cost, our social media platforms, vendors and marketing channels.
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- Business Management System and Computer Equipment Currently you are required to purchase, license, and utilize Crelate as the customer relationship management system, as well as the payroll, accounting, and VoIP systems, and such other Business Management Systems as designated in the Manuals. We may change the Business Management Systems at any time in our Manuals. You must purchase and maintain a computer system at your Administrative Office. In general, you will be required to obtain a computer system that will consist of certain hardware, software, and peripheral devices such as printers. You will be required to meet our requirements involving back office and customer relationship management systems, security systems, printers, back-up systems, and high-speed internet access.
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- Computer System You must purchase and maintain a computer system at your Administrative Office. In general, you will be required to obtain a computer system that will consist of certain hardware, software, and peripheral devices such as printers. You will be required to meet our requirements involving back office and
customer relationship management systems, security systems, printers, back-up systems, and high-speed internet access.
5.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees are required to maintain both an initial and ongoing inventory of 'System Supplies'. These supplies, as designated by Cordova, must be purchased from Cordova itself, its affiliates, or suppliers that Cordova has designated.
Cordova also mandates that all materials bearing the company's Licensed Marks, such as stationery, business cards, brochures, apparel, signs, and displays, meet Cordova's standards and specifications. These branded items must be purchased directly from Cordova or its designated suppliers. Furthermore, all marketing materials must comply with Cordova's standards and require approval before use. Franchisees are permitted to market their Cordova business through approved digital and social media platforms, provided they adhere to Cordova's digital media and social media policies. All branded marketing materials must be purchased from Cordova or its exclusive supplier. Cordova may also require franchisees to exclusively use their designated supplier for social and digital media marketing services and social media platforms, vendors, and marketing channels, at the franchisee's cost.
In addition to System Supplies and branded items, Cordova franchisees are required to purchase, license, and utilize specific business management systems. Currently, this includes Crelate as the customer relationship management system, as well as payroll, accounting, and VoIP systems, and any other Business Management Systems designated in the Manuals. Cordova retains the right to change these Business Management Systems at any time by updating the Manuals. Franchisees must also purchase and maintain a computer system at their Administrative Office, meeting Cordova's requirements for back office and customer relationship management systems, security systems, printers, back-up systems, and high-speed internet access.
Cordova estimates that purchases from approved suppliers, including exclusive suppliers, will constitute approximately 75% of the franchisee's total initial investment in establishing the Franchised Business. Ongoing, these purchases are estimated to represent about 30% of the Franchised Business's operating expenses. This highlights the importance of understanding the costs and supplier relationships involved in operating a Cordova franchise.