When are attorneys' fees and costs due to Chop5 Salad Kitchen?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
|---|---|---|---|
| Default Reimbursements | All costs we incur to cure your default | 10 days after invoice | If you fail to cure a breach of the Franchise Agreement or our brand standards in the time period we require, we may take steps to cure on your behalf and you must reimburse us for our costs (examples include failure to pay suppliers, maintain insurance, or meet quality or safety standards). |
| Management Fee | $500 per day plus Travel Expenses | 10 days after invoice | We can designate a manager to manage your Restaurant: (a) while you are in default under the Franchise Agreement (but only if you fail to remedy the default within the cure period); or (b) after termination or expiration of the Franchise Agreement while we decide whether to exercise our purchase option. |
| Indemnification | Amount of our damages, losses or expenses | 10 days after invoice | You must indemnify and reimburse us for all damages, losses or expenses we incur due to the operation of your Restaurant or your breach of the Franchise Agreement or ADA. |
| Attorneys' Fees and Costs | Amount of attorneys' fees and costs we incur | Upon demand | You must reimburse us for all attorneys' fees and costs we incur relating to your breach of the Franchise Agreement or any related agreement. |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, franchisees must reimburse Chop5 Salad Kitchen for all attorneys' fees and costs the company incurs relating to the franchisee's breach of the Franchise Agreement or any related agreement. These fees and costs are due 'upon demand'.
This means that if a Chop5 Salad Kitchen franchisee violates the terms of their agreement with the company, they will be responsible for covering Chop5 Salad Kitchen's legal expenses. The franchisee does not have a set number of days to pay, but instead must pay when Chop5 Salad Kitchen demands payment.
This arrangement is typical in franchising, as it protects the franchisor from losses incurred due to a franchisee's non-compliance. Prospective franchisees should carefully review the Franchise Agreement to understand what constitutes a breach and what actions could trigger the assessment of attorneys' fees and costs.