Does Chop5 Salad Kitchen currently have any purchasing cooperatives established?

According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the franchise does not currently have any purchasing cooperatives established. However, the FDD indicates that Chop5 Salad Kitchen may establish them in the future.

Chop5 Salad Kitchen may also try to establish relationships with suppliers to enable its affiliates and franchisees to purchase certain items at discounted prices. If Chop5 Salad Kitchen succeeds in negotiating discounted prices with suppliers, franchisees will be able to purchase these items at the discounted prices, less any rebates or other consideration paid to Chop5 Salad Kitchen. Chop5 Salad Kitchen may also purchase items in bulk and resell them to franchisees at their cost plus a reasonable markup. The FDD states that the franchisee's total cost to purchase the items from Chop5 Salad Kitchen will not exceed their total cost to purchase the items directly from the supplier without the benefit of Chop5 Salad Kitchen's group purchasing power.

While there are currently no purchasing cooperatives, Chop5 Salad Kitchen estimates that nearly 70% to 95% of the total purchases and leases to establish a Restaurant and 35% to 60% of ongoing operating expenses will consist of source-restricted goods or services. This means franchisees must purchase these goods or services from approved or designated suppliers, potentially impacting their costs and operational flexibility.