Is the Brand Fund currently established by Chop5 Salad Kitchen?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Definitions: As used in this Disclosure Document, the following capitalized terms have the meanings given to them below:
- "Brand Fund" means the brand and system development fund that we intend to administer to promote public recognition of our brand and improve our System. We have not established the Brand Fund as of the issuance date of this Disclosure Document.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the Brand Fund has not been established as of the issuance date of the document. The Brand Fund is defined as the brand and system development fund that Chop5 Salad Kitchen intends to administer to promote public recognition of their brand and improve their system.
While the Brand Fund is not currently established, franchisees should be aware that they will be required to contribute to it once it is created. The Brand Fund fee is outlined in the FDD and is a percentage of gross sales. Specifically, the Brand Fund fee is 0.5% of Gross Sales for the first year, 1.0% of Gross Sales for the second year, and 1.5% of Gross Sales for the remainder of the term.
Chop5 Salad Kitchen may increase the brand fund fee by up to 4% with 180 days' prior notice. The maximum total amount that Chop5 Salad Kitchen may charge at any given time for the brand fund fee, Local Advertising Commitment, and Cooperative Advertising Fee is capped at 8.5% of Gross Sales. Franchisees do not have voting rights pertaining to the administration of the Brand Fund, the creation or placement of advertising, or the amount of the brand fund fee.