What conditions are imposed for a Minority Interest Transfer of a Chop5 Salad Kitchen franchise?

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| THE FRANCHISE RELATIONSHIP                 |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |  |  |  |
|--------------------------------------------------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| PROVISION | SECTIONS IN AGREEMENT FA: 19.2 | SUMMARY Transferee must: meet our qualifications; successfully complete training (or arrange to do so); obtain required licenses and permits; agree in writing to assume your obligations under agreements relating to the Business; sign then-current form of franchise agreement for remainder of term or, at our option, assume your Franchise Agreement; and remodel Restaurant and upgrade furniture, fixtures and equipment to current standards within 12 months after transfer or such shorter period of time we specify. You must: be in compliance with Franchise Agreement; assign lease (if applicable); pay transfer fee; subordinate transferee's ongoing payments owed to you (if any) to transferee's financial obligations owed to us; and sign general release (subject to state law). We must notify you that we will not exercise our right of first refusal. |  |  |  |  |
| m. Conditions for our approval of transfer | ADA: 8.2 | If a Transfer qualifies as a Minority Interest Transfer, we do not impose any conditions for transfer other than: (a) we must approve the new owner as meeting our criteria; and (b) you must be in compliance with Franchise Agreement. Transferee must: meet our qualifications; successfully complete training (or arrange to do so); and sign then-current form of area development agreement for remainder of term or, at our option, assume your ADA. You must: be in compliance with all Franchise Agreements and ADA; assign all Franchise Agreements to same purchaser unless we agree to contrary (or at our option, transferee must sign then-current form of franchise agreement); comply with transfer provisions under Franchise Agreements; pay transfer fee; and sign general release (subject to state law). We must notify you that we will not exercise our right of first refusal. If a Transfer qualifies as a Minority Interest Transfer, we do not impose any conditions for transfer other than: (a) we must approve the new owner as meeting our criteria; and (b) you must be in compliance with the ADA and all Franchise Agreements. |  |  |  |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 41–45)

What conditions are imposed for a Minority Interest Transfer of a Chop5 Salad Kitchen franchise?

Answer from 2024 FDD Document

What This Means (2024 FDD)

THE FRANCHISE RELATIONSHIP
PROVISION	SECTIONS IN AGREEMENT FA: 19.2	SUMMARY Transferee must: meet our qualifications; successfully complete training (or arrange to do so); obtain required licenses and permits; agree in writing to assume your obligations under agreements relating to the Business; sign then-current form of franchise agreement for remainder of term or, at our option, assume your Franchise Agreement; and remodel Restaurant and upgrade furniture, fixtures and equipment to current standards within 12 months after transfer or such shorter period of time we specify. You must: be in compliance with Franchise Agreement; assign lease (if applicable); pay transfer fee; subordinate transferee's ongoing payments owed to you (if any) to transferee's financial obligations owed to us; and sign general release (subject to state law). We must notify you that we will not exercise our right of first refusal.
m. Conditions for our approval of transfer	ADA: 8.2	If a Transfer qualifies as a Minority Interest Transfer, we do not impose any conditions for transfer other than: (a) we must approve the new owner as meeting our criteria; and (b) you must be in compliance with Franchise Agreement. Transferee must: meet our qualifications; successfully complete training (or arrange to do so); and sign then-current form of area development agreement for remainder of term or, at our option, assume your ADA. You must: be in compliance with all Franchise Agreements and ADA; assign all Franchise Agreements to same purchaser unless we agree to contrary (or at our option, transferee must sign then-current form of franchise agreement); comply with transfer provisions under Franchise Agreements; pay transfer fee; and sign general release (subject to state law). We must notify you that we will not exercise our right of first refusal. If a Transfer qualifies as a Minority Interest Transfer, we do not impose any conditions for transfer other than: (a) we must approve the new owner as meeting our criteria; and (b) you must be in compliance with the ADA and all Franchise Agreements.