What discount do college students receive at the Chop5 Salad Kitchen UCF Restaurant?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
data from our Company-Owned Restaurant that opened in 2023 since it was not open and operating throughout the entire Measuring Period.
We excluded data from another Company-Owned Restaurant (the "UCF Restaurant") because it is materially different than the Franchised Restaurant offered under this Disclosure Document. The UCF Restaurant is an experimental Restaurant that we established to test our model with a different demographic population (college-aged students). The UCF Restaurant is located immediately adjacent to a college campus and shares many characteristics of Restaurants located in Captive Venues. The UCF Restaurant is 3,400 square feet, which is much larger than our recommended size for a Franchised Restaurant (our franchise model is for a restaurant
ranging in size from 1,700 to 2,500 square feet). The UCF Restaurant serves as our testing facility for new product offerings, including non-standard lower-priced menu items targeting college students with limited disposable income. The UCF Restaurant offers menu items at prices materially lower than the prices charged by a typical Restaurant. College students also receive an additional 10% discount on all purchases.
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, college students receive an additional 10% discount on all purchases at the UCF Restaurant. The UCF Restaurant is a company-owned experimental location near a college campus that Chop5 Salad Kitchen uses to test its model with a college-aged demographic.
This restaurant is materially different from a standard Chop5 Salad Kitchen franchise. The UCF Restaurant is larger, measuring 3,400 square feet compared to the recommended 1,700 to 2,500 square feet for a franchised location. It also serves as a testing facility for new, lower-priced menu items designed for college students with limited income.
Because of these differences, the financial performance of the UCF Restaurant is excluded from the financial performance representation provided in the FDD. A prospective franchisee should not rely on the performance of the UCF Restaurant when evaluating the potential financial performance of a standard Chop5 Salad Kitchen franchise.