Under what circumstances can Cordova refuse to renew a franchise agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
n, waiver or estoppel that deprives you of rights and protections provided in this act. This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
- C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
- D. A provision that permits us to refuse to renew a franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to us and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise
business are not subject to compensation. This subsection applies only if: (a) the term of the franchise is less than five years, and (b) you are prohibited by the Franchise Agreement or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising or other commercial symbol in the same area subsequent to the expiration of the franchise or you do not receive at least six months advance notice of our intent not to renew the franchise.
- E. A provision that permits us to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, specific reasons for non-renewal are not detailed in the provided excerpts, but the document does address franchisee rights in the context of non-renewal in certain states.
For instance, in Michigan, Cordova cannot refuse to renew a franchise without fairly compensating the franchisee for the fair market value of inventory, supplies, equipment, fixtures, and furnishings at the time of expiration. This compensation is not required for personalized materials with no value to Cordova or for items not reasonably required for the franchise business. This provision applies if the franchise term is less than five years and the franchisee is either prohibited from continuing a similar business under a different trademark in the same area after the franchise expires, or does not receive at least six months' advance notice of non-renewal.
In Minnesota, franchisees are entitled to certain termination and non-renewal rights under Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5, which generally require Cordova to provide 180 days' notice of nonrenewal, except in specific cases. Similarly, New York law ensures that franchisees retain all rights and causes of action arising from the provisions of New York General Business Law Sections 680-695, reinforcing non-waiver provisions related to renewal.
Prospective franchisees should consult the full 2025 Franchise Disclosure Document and speak with Cordova directly to fully understand the conditions under which Cordova may refuse to renew a franchise agreement, as well as the franchisee's rights and obligations upon non-renewal. Understanding these conditions is crucial for making an informed investment decision.