When is the Cooperative Advertising Fee due for Chop5 Salad Kitchen franchisees?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
al Restaurant) | |
| 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%. |
| Local Advertising | [1st Year] 8.0% of Gross Sales | Monthly, as incurred | This is the minimum amount you must spend on advertising and marketing in your local market to promote your Restaurant. This expenditure is in addition to your brand fund fee. |
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 Cooperative Advertising Fee is due at the same time as the royalty fee. The amount of the Cooperative Advertising Fee is determined by the cooperative, but it cannot exceed the Local Advertising Commitment.
Chop5 Salad Kitchen may establish regional advertising cooperatives for the purpose of pooling advertising funds to be used in specific regions. Franchisees may be required to pay these fees directly to the cooperative, or to Chop5 Salad Kitchen, who will then remit the fees to the cooperative. The fees are uniformly imposed on all restaurants within the cooperative, including company-owned restaurants.
The Cooperative Advertising Fee contributes towards the franchisee's Local Advertising Commitment. The maximum total amount that Chop5 Salad Kitchen may charge for the brand fund fee, Local Advertising Commitment, and Cooperative Advertising Fee is capped at 8.5% of Gross Sales.