When is the Brand Fund Fee due for Chop5 Salad Kitchen franchisees?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
|---|---|---|---|
| Brand Fund Fee | [1st Year] 0.5% of Gross Sales [2nd Year] 1.0% of Gross Sales [Rest of Term] 1.5% of Gross Sales | Same as royalty fee | You must contribute this amount to the Brand Fund we administer. You have no voting rights pertaining to the administration of the Brand Fund, the creation or placement of advertising, or the amount of the brand fund fee. We may increase the brand fund fee by up to 4% on 180 days' prior notice. The maximum total amount we may charge at any given time for the brand fund fee, Local Advertising Commitment and Cooperative Advertising Fee is capped at 8.5%. |
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 Fee is due at the same time as the royalty fee. The Brand Fund Fee varies depending on the year of operation. In the first year, it is 0.5% of Gross Sales, in the second year it is 1.0% of Gross Sales, and for the remainder of the term, it is 1.5% of Gross Sales.
The Brand Fund is intended to promote public recognition of the Chop5 Salad Kitchen brand and improve its system. The franchisee must contribute to this fund, but they have no voting rights regarding its administration, advertising creation or placement, or the fee amount.
Chop5 Salad Kitchen retains the right to 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.