What agreement is included as Exhibit D in the Chop5 Salad Kitchen Disclosure Document?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
If you satisfy our criteria for multi-unit developers, we may (but need not) offer you the right to sign the form of Area Development Agreement attached to this Disclosure Document as EXHIBIT "D" (the "ADA"). The ADA grants you the right and obligation to develop, open and operate multiple Restaurants within a defined "development territory" according to a predetermined "development schedule". You must develop, open and operate all of the Restaurants identified in the development schedule. We only grant area development rights to franchisees who commit to develop, open and operate a minimum of 2 Restaurants. You sign a separate
franchise agreement for each Restaurant you develop under the ADA. Each franchise agreement will be our then-current form of franchise agreement, which may differ from the current Franchise Agreement attached to this Disclosure Document (except the royalty fee will not exceed 6% of Gross Sales).
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, Exhibit D is the Area Development Agreement (ADA). This agreement is offered to candidates who meet Chop5 Salad Kitchen's criteria for multi-unit developers.
The ADA grants the franchisee the right and obligation to develop, open, and operate multiple Chop5 Salad Kitchen restaurants within a defined territory, following a predetermined development schedule. The franchisee must adhere to the development schedule and open the number of restaurants specified in the agreement.
Chop5 Salad Kitchen only grants area development rights to franchisees who commit to developing, opening, and operating a minimum of 2 restaurants. For each restaurant developed under the ADA, the franchisee must sign a separate franchise agreement. These individual franchise agreements will be the then-current form, which may differ from the franchise agreement attached to the Disclosure Document, but the royalty fee will not exceed 6% of Gross Sales.