When is the Chop5 Salad Kitchen audit fee due?

Question

Accepted Answer

| Type of Fee ¹ | AMOUNT 2, 3 | DUE DATE | REMARKS | |--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | System Program | Varies (not currently charged) | 10 days after invoice or as otherwise specified | You must participate in any customer loyalty and/or gift card program we establish and pay all associated program contributions and fees we require to implement and administer these programs. These amounts are paid either to us or to a third party we designate. | | Fees | | | | | Product Purchases | Varies depending on item purchased | 10 days after invoice | We or our affiliate may serve as a System supplier for certain goods or services you must purchase. If this occurs, we will provide you with a price list upon request. | | New Product or | Cost of testing (up to \$2,500 per test) | 10 days after invoice | This covers the costs of testing new products or inspecting new suppliers you propose. | | Supplier Testing | | | | | Relocation Fee | \$5,000 | At time we approve request to relocate | Imposed if we approve your request to relocate your Restaurant. | | Renewal Fee | \$2,000 | At time you sign Renewal Agreement | Imposed if you renew your franchise rights by signing a successor Franchise Agreement. | | Transfer Fee | [Franchise Agreement] Greater of \$4,000 or 10% of then-current standard initial franchise fee [ADA] \$15,000 | Before Transfer | You do not pay us a transfer fee for a Permitted Transfer or Minority Interest Transfer. All other Transfers require payment of the transfer fee. If you sign an ADA, a separate transfer fee is imposed under the ADA and each Franchise Agreement that is assigned. If our broker finds the buyer, you must also reimburse us for all commissions we pay the broker. | | Reimbursement of | Varies | 10 days after invoice | We may hire a person or company to inspect your Restaurant for quality control purposes. You must pay the cost of the inspection (or we may pay the cost and you must reimburse us). | | Quality Assurance | | | | | Program Costs | | | | | Reimbursement of | All Travel Expenses and other costs we incur to travel to and inspect your Restaurant | 10 days after invoice | Imposed if we inspect your Restaurant to determine if you remedied a (a) health or safety issue identified by a government agency or (b) breach of system standards that we previously brought to your attention. | | Reinspection | | | | | Costs | | | | | Audit Fee | Actual cost of audit (including Travel Expenses for audit team) | 10 days after invoice | Imposed if an audit (a) is necessary because you fail to send us required information or reports in a timely manner on 3 or more occasions in any 12-month period or (b) reveals you understated Gross Sales by 3% or more. | Source: Item 6 — OTHER FEES (FDD pages 12–17)

When is the Chop5 Salad Kitchen audit fee due?

Answer from 2024 FDD Document

What This Means (2024 FDD)

Type of Fee ¹	AMOUNT 2, 3	DUE DATE	REMARKS
System Program	Varies (not currently charged)	10 days after invoice or as otherwise specified	You must participate in any customer loyalty and/or gift card program we establish and pay all associated program contributions and fees we require to implement and administer these programs. These amounts are paid either to us or to a third party we designate.
Fees
Product Purchases	Varies depending on item purchased	10 days after invoice	We or our affiliate may serve as a System supplier for certain goods or services you must purchase. If this occurs, we will provide you with a price list upon request.
New Product or	Cost of testing (up to $2,500 per test)	10 days after invoice	This covers the costs of testing new products or inspecting new suppliers you propose.
Supplier Testing
Relocation Fee	$5,000	At time we approve request to relocate	Imposed if we approve your request to relocate your Restaurant.
Renewal Fee	$2,000	At time you sign Renewal Agreement	Imposed if you renew your franchise rights by signing a successor Franchise Agreement.
Transfer Fee	[Franchise Agreement] Greater of $4,000 or 10% of then-current standard\ninitial franchise fee [ADA] $15,000	Before Transfer	You do not pay us a transfer fee for a Permitted Transfer or Minority Interest Transfer. All other Transfers require payment of the transfer fee. If you sign an ADA, a separate transfer fee is imposed under the ADA and each Franchise Agreement that is assigned. If our broker finds the buyer, you must also reimburse us for all commissions we pay the broker.
Reimbursement of	Varies	10 days after invoice	We may hire a person or company to inspect your Restaurant for quality control purposes. You must pay the cost of the inspection (or we may pay the cost and you must reimburse us).
Quality Assurance
Program Costs
Reimbursement of	All Travel Expenses and other costs we incur to travel to and inspect your Restaurant	10 days after invoice	Imposed if we inspect your Restaurant to determine if you remedied a (a) health or safety issue identified by a government agency or (b) breach of system standards that we previously brought to your attention.
Reinspection
Costs
Audit Fee	Actual cost of audit (including Travel Expenses for audit team)	10 days after invoice	Imposed if an audit (a) is necessary because you fail to send us required information or reports in a timely manner on 3 or more occasions in any 12-month period or (b) reveals you understated Gross Sales by 3% or more.