How is a 'Competing Business' defined in the Chop5 Salad Kitchen franchise agreement?

According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, a 'Competing Business' is defined with specific criteria that could impact a franchisee's future business ventures. The definition includes any fast-casual restaurant deriving, or expected to derive, at least 35% of its revenue from made-to-order salads, salad bowls, grain bowls, and/or soups. This revenue threshold is a key factor in determining whether a business is considered competitive.

Furthermore, the definition extends to businesses that offer or sell franchises or licenses for businesses meeting the above criteria. This implies that even if a franchisee isn't directly operating a restaurant, involvement in franchising similar concepts could be considered a conflict of interest. Additionally, any business that provides services, training, support, or consulting related to the development, management, or operation of businesses fitting the initial revenue and product criteria also falls under the definition of a 'Competing Business'.

However, the definition explicitly excludes any Chop5 Salad Kitchen Restaurant operating under a valid franchise or license agreement with Chop5 Salad Kitchen or its affiliates. This clarification ensures that franchisees within the Chop5 Salad Kitchen system are not considered 'Competing Businesses' to one another. This definition is important for prospective franchisees to understand, as it could restrict their ability to engage in other business opportunities, both during and potentially after the franchise agreement term, due to non-compete clauses.