Does the definition of 'Acquisition' in the Chop5 Salad Kitchen Franchise Agreement include an affiliation?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
federal, state and local Laws, ordinances, regulations, policies, lists, orders and any other requirements of any Governmental Authority addressing or in any way relating to terrorist acts and acts of war.
- "Appraised Value" means the fair market value of the Acquired Assets as determined by independent appraisers in accordance with §21.2.
- "Brand Protection Agreement" means the Brand Protection Agreement that must be signed by your Restaurant managers, the current form of which is attached as ATTACHMENT "F".
- "Business" means the franchised business you operate pursuant to this Agreement.
- "Business Data" means, collectively or individually, Customer Data and Operational Data.
- "Captive Venue" means a non-traditional outlet for a Restaurant that is located within, or is a part of, another establishment or facility that consumers may visit for a purpose unrelated to the Restaurant. Examples of Captive Venues include Restaurants that are located within hotels, casinos, college campuses, universities, airports, train stations, bus stations, cruise terminals, stadiums, sporting arenas, shopping malls, military bases, concert venues, amusement parks or similar types of establishments.
- "Claim" means any action, allegation, assessment, claim, demand, litigation, proceeding or regulatory procedure, investigation or inquiry.
- "Competing Business" means any business that meets at least one of the following criteria: (a) any fast casual restaurant that derives, or is reasonably expected to derive, at least 35% of its revenue from the sale of made-to-order salads, salad bowls, grain bowls and/or soups;
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
Based on the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, the term "Acquired Assets" is defined in relation to determining the fair market value of assets. However, the document does not explicitly define "Acquisition" itself or clarify whether it includes an affiliation. The FDD does define other terms such as "Transfer," which includes various methods of transferring interest in the agreement, franchise rights, the business, or the restaurant's assets.
Because the definition of "Acquisition" is not provided, it is not possible to determine from the provided excerpts whether an affiliation would be included under that term.
A prospective Chop5 Salad Kitchen franchisee should seek clarification from the franchisor regarding the definition of "Acquisition" and whether it encompasses affiliations to fully understand the implications for potential transactions or changes in ownership structure.