What is the due date for the Chop5 Salad Kitchen late fee?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
|---|---|---|---|
| System Program | Varies (not currently charged) | 10 days after invoice or as otherwise specified | You must participate in any customer loyalty and/or gift card program we establish and pay all associated program contributions and fees we require to implement and administer these programs. These amounts are paid either to us or to a third party we designate. |
| Fees | |||
| Product Purchases | Varies depending on item purchased | 10 days after invoice | We or our affiliate may serve as a System supplier for certain goods or services you must purchase. If this occurs, we will provide you with a price list upon request. |
| New Product or | Cost of testing (up to $2,500 per test) | 10 days after invoice | This covers the costs of testing new products or inspecting new suppliers you propose. |
| Supplier Testing | |||
| Relocation Fee | $5,000 | At time we approve request to relocate | Imposed if we approve your request to relocate your Restaurant. |
| Renewal Fee | $2,000 | At time you sign Renewal Agreement | Imposed if you renew your franchise rights by signing a successor Franchise Agreement. |
| Transfer Fee | [Franchise Agreement] Greater of $4,000 or 10% of then-current standard\ninitial franchise fee [ADA] $15,000 | Before Transfer | You do not pay us a transfer fee for a Permitted Transfer or Minority Interest Transfer. All other Transfers require payment of the transfer fee. If you sign an ADA, a separate transfer fee is imposed under the ADA and each Franchise Agreement that is assigned. If our broker finds the buyer, you must also reimburse us for all commissions we pay the broker. |
| Reimbursement of | Varies | 10 days after invoice | We may hire a person or company to inspect your Restaurant for quality control purposes. You must pay the cost of the inspection (or we may pay the cost and you must reimburse us). |
| Quality Assurance | |||
| Program Costs | |||
| Reimbursement of | All Travel Expenses and other costs we incur to travel to and inspect your Restaurant | 10 days after invoice | Imposed if we inspect your Restaurant to determine if you remedied a (a) health or safety issue identified by a government agency or (b) breach of system standards that we previously brought to your attention. |
| Reinspection | |||
| Costs | |||
| Audit Fee | Actual cost of audit (including Travel Expenses for audit team) | 10 days after invoice | Imposed if an audit (a) is necessary because you fail to send us required information or reports in a timely manner on 3 or more occasions in any 12-month period or (b) reveals you understated Gross Sales by 3% or more. |
| Late Fee | 10% of past due amount plus default interest at lesser of (a) 18% per annum (prorated on daily basis) or (b) highest rate allowed by applicable law | 10 days after invoice | If we debit your account but there are insufficient funds, or a check you issue is returned due to insufficient funds, then we may charge (in addition to the late fee) an NSF fee of $50 per incident. In California, |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the due date for the late fee is 10 days after the invoice date. The late fee is 10% of the past due amount, in addition to default interest. The default interest is the lesser of 18% per annum (prorated daily) or the highest rate allowed by applicable law. In California, the default interest is limited to 10% per annum.
In addition to the late fee, Chop5 Salad Kitchen may charge a $50 NSF fee per incident if a franchisee's account is debited, but there are insufficient funds, or if a check is returned due to insufficient funds.
As a prospective franchisee, it is important to be aware of these fees and ensure timely payments to avoid incurring these additional costs. Maintaining sufficient funds in the designated bank account for electronic debits is crucial to prevent NSF fees.