Are there any activities expressly prohibited to Cordova by the Franchise Agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
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Soliciting by You Outside Your Territory and Territory Rules
You must operate your Cordova Business and provide the Approved Services and Products to clients exclusively within your Operating Territory. The marketing of your Cordova Business must be targeted to your Operating Territory. You may place a candidate that resides and/or is located outside of your Operating Territory and within the United States (an "Out of Territory Candidate") with a client that is located within your Operating Territory provided that you comply with rules and System requirements including, but not limited to, our fee splitting rules as set forth in the Manuals.
You may solicit candidates who reside within or outside of Franchisee's Operating Territory provided that you comply with our solicitation rules and requirements as designated by us in our Manuals. You are not allowed to directly solicit clients outside of your Operating Territory, and you do not have the right to use other channels of distribution, such as the internet, catalog sales, or other direct marketing to make sales outside your Operating Territory.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
Except as otherwise noted above, there are no restrictions on us from soliciting or accepting orders from clients inside your territory.
Source: Item 12 — TERRITORY (FDD pages 28–30)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Franchise Agreement specifies certain activities that franchisees are not allowed to do. A Cordova franchisee must operate their business and provide services exclusively within their designated Operating Territory. This means that the franchisee's marketing efforts must be targeted specifically to this territory.
While franchisees can place candidates residing outside their territory (within the United States) with clients inside their territory, they must adhere to Cordova's rules, including fee-splitting arrangements detailed in the manuals. However, franchisees are explicitly prohibited from directly soliciting clients outside of their assigned Operating Territory. Additionally, they cannot use other distribution channels like the internet, catalog sales, or direct marketing to make sales outside their territory.
Cordova does not grant franchisees the right to establish additional Cordova Businesses. Franchisees also do not receive options or rights of first refusal to acquire additional franchises. These restrictions ensure that each franchisee focuses on developing their assigned territory and prevents overlap or competition between franchisees in different areas.