Under what grounds can a Cordova franchisee terminate the franchise agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
upersedes any other term of any document executed in connection with the franchise.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this Maryland amendment to the Cordova Franchising, LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Cordova Franchising, LLC | Franchisee: | |
|---|---|---|
| By: | Signature | |
| Signature | ||
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
MINNESOTA FRANCHISE AGREEMENT AMENDMENT
Amendments to the Cordova Franchise Agreement:
In recognition of the requirements of the Minnesota Statutes, Chapter 80C. and Minnesota Franchise Rules, Chapter 2860, the parties to the attached Cordova Franchising, LLC Franchise Agreement (the "Franchise Agreement"), as follows:
- Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C.(6) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
- Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B.(8) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
- Under Article 11 of the Franchise Agreement, under the heading "Notification of Infringement and Claims," the subarticle 11.C. shall be supplemented by the addition of the following:
Franchisor agrees to protect Franchisee, to the extent required by the Minnesota Franchise Act, against claims of infringement or unfair competition with respect to Franchisee's use of the Marks when, in the opinion of Franchisor's counsel, Franchisee's rights warrant protection pursuant to Article 11.E. of this Agreement.
- Under Article 14 of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C. shall be supplemented by the addition of the following:
Franchisor shall not unreasonably withhold consent to transfer the Franchise Agreement.
- Under Article 16 of the Franchise Agreement, under the heading "Defaults and Automatic Termination Upon Written Notice Without Cure Period," the subarticle 16.A.(2) shall be supplemented by the addition of the following:
Article 16.A.(2) will not be enforced to the extent prohibited by applicable law.
- Under Article 16 of the Franchise Agreement, under the heading "Defaults and Automatic Termination After 30 Day Cure Period," the subarticle 16.A.(4)(f), shall be supplemented by the addition of the following:
Subarticle 16.A.(4)(f) will not be enforced to the extent prohibited by applicable law.
- Under both subarticles 16.A.(2) and 16.A.(4) of the Franchise Agreement, the following is added:
Minnesota law provides a franchisee with certain termination rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 90 daysnotice of termination (with 60 days to cure) of this Agreement.
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- Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.F.:
- ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
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- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.G. of the Franchise Agreement:
- ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
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- Article 18.K. of the Franchise Agreement, under the heading "Waiver of Jury Trial", shall be supplemented by the addition of the following statement at the end of the sentence contained in Article 18.K. of the Franchise Agreement:
- ; except that nothing in this Agreement should be considered a waiver of any right conferred upon Franchisee by the Minnesota Franchise Act.
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- Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be supplemented by the addition of the following statement:
- Under the Minnesota Franchise Act, any claims between the parties must be commenced within three years of the occurrence of the facts giving rise to such claim, or such claim shall be barred.
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- Article 18 of the Franchise Agreement, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
Any foregoing acknowledgments are not intended to nor shall they act as a release, estoppel or waiver or any liability under the Minnesota Franchise Act.
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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 Minnesota Franchise Act 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)
Based on the 2025 Cordova Franchise Disclosure Document, a franchisee's ability to terminate the franchise agreement is influenced by state-specific laws, particularly in Minnesota, North Dakota, Rhode Island, and Virginia. In Minnesota, the franchisee retains certain termination and non-renewal rights as provided by Minn. Stat. Sect. 80C.14. Similarly, North Dakota law impacts the enforceability of provisions related to termination, releases, covenants not to compete, and consent to jurisdiction outside of North Dakota. These amendments ensure that certain protections under North Dakota's Franchise Investment Law are maintained for franchisees in that state. The Rhode Island FDD Amendment states that any general release as a condition of termination will be void with respect to claims under the Rhode Island Franchise Investment Act. In Virginia, it is unlawful for Cordova to cancel a franchise without reasonable cause, according to the Virginia Retail Franchising Act.
Upon termination of the Cordova franchise agreement, the franchisee must immediately pay all outstanding sums and fees owed to Cordova, including Royalty Fees and Advertising Contributions. The franchisee is also required to cease operations as a Cordova franchise owner and discontinue using the System, which includes Confidential Information, Licensed Marks, and Business Management System Data. These obligations are in place regardless of the reason for termination, ensuring a clean break and protection of Cordova's proprietary assets.
Prospective Cordova franchisees should carefully review the specific amendments and legal provisions applicable to their state, as these can significantly affect their rights and obligations upon termination. It is also important to understand the financial implications of termination, including the immediate payment of all outstanding fees and the potential for Cordova to pursue lost revenues and profits. Consulting with a franchise attorney is advisable to fully understand the termination terms and their potential impact.