What is Chop5 Salad Kitchen's definition of a 'Captive Venue'?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
en signed); and (b) as otherwise permitted below with respect to Captive Venues and Acquisitions.
We reserve the right to develop and operate, and license third parties to develop and operate, Restaurants that
are located in Captive Venues, including Captive Venues located within your territory and development territory, if applicable. A "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.
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, a "Captive Venue" is defined as a non-traditional outlet for a Chop5 Salad Kitchen 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 itself. This means that the location is not a standalone restaurant but rather situated inside another business or venue.
Examples of Captive Venues provided in the FDD include locations within hotels, casinos, college campuses, universities, airports, train stations, bus stations, cruise terminals, stadiums, sporting arenas, shopping malls, military bases, concert venues, and amusement parks. These are all places where people gather for reasons other than specifically to dine at a Chop5 Salad Kitchen.
Chop5 Salad Kitchen retains the right to develop and operate, or license third parties to develop and operate, restaurants within these Captive Venues, even if they are located within a franchisee's territory or development territory. This is a significant consideration for prospective franchisees, as it means that Chop5 Salad Kitchen could potentially place a competing location within their designated area, limiting their market share and revenue potential. Franchisees should carefully consider the implications of this policy and its potential impact on their investment before signing a franchise agreement.