Can Cordova use the Brand Development Fund for technology development?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
your monthly Gross Sales to the Brand Development Fund. We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, advertising councils, franchisee advisory councils, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System. Our company and/or affiliate owned Cordova Businesses may but are not required to contribute to the Brand Development Fund. The Brand Development Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12-month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year. We are not required to segregate the Brand Development Fund from our general operating funds and we are not a fiduciary or trustee of the Brand Development Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–28)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the Brand Development Fund can be used for technology development. Franchisees contribute a monthly sum not to exceed 2% of their monthly Gross Sales to this fund.
The FDD specifies that Cordova may use the Brand Development Fund for various purposes, including market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, advertising councils, franchisee advisory councils, administrative costs, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials.
Cordova may utilize the Brand Development Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Cordova Businesses and the marketing of Cordova Businesses. These technology developments and/or improvements may relate, among other things, to their website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Cordova Businesses. It is important to note that franchisees may or may not directly benefit from these technology developments and improvements.