As of December 31, 2023, how many franchised Chop5 Salad Kitchen restaurants were in operation?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
For purposes of this FPR, each Restaurant may be referred to as an "outlet." As of December 31, 2023 (the last day of the Measuring Period) there were: (a) 0 Franchised Restaurants in operation; and (b) 3 Company-Owned Restaurants in operation, 1 of which is a Qualifying Restaurant. The table below summarizes the outlet statistics and the number of Qualifying Restaurants:
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 45–48)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, there were zero franchised restaurants in operation as of December 31, 2023. The document provides system statistics indicating that the brand had three company-owned restaurants in operation at that time, one of which was considered a 'Qualifying Restaurant' for financial performance representation purposes.
This information is crucial for potential franchisees as it provides insight into the current franchise system's structure. The fact that there were no franchised locations in operation during the measuring period means that the Item 19 financial performance representation is based solely on the performance of a company-owned restaurant.
Prospective franchisees should consider this when evaluating the financial data, as the performance of a company-owned restaurant may not be directly indicative of how a franchised location would perform. It would be prudent to ask Chop5 Salad Kitchen about their plans for franchise expansion and what support and resources they intend to provide to new franchisees to ensure their success.