Under what condition does each provision of the Cordova amendment become effective?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
ed a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
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- There are circumstances in which an offering made by Cordova Franchising, LLC would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in New York or the Outlet will be opening in New York. Cordova Franchising, LLC is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the New York General Business Law, are met independently without reference to this amendment.
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Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the effectiveness of each provision within the state-specific amendments is contingent upon meeting the jurisdictional requirements of the relevant state's franchise law, independently of the amendment itself. This condition applies to the franchise laws of New York, Minnesota, Hawaii, and Illinois.
For a prospective Cordova franchisee, this means that the protections and stipulations outlined in the amendment for their specific state only apply if the legal requirements for that state's franchise law are already satisfied. The amendment doesn't create jurisdiction where it doesn't already exist; it simply reinforces existing rights and protections under state law.
This condition ensures that Cordova franchisees receive the full benefit of their state's franchise laws, such as those concerning termination, non-renewal, transfer, and waivers. It also prevents Cordova from circumventing these laws through standardized agreements. Franchisees should consult with a legal professional to ensure they understand the specific jurisdictional requirements of their state's franchise law and how they apply to their franchise agreement with Cordova.