For Chop5 Salad Kitchen, where in the FDD can I find the total number of restaurants to be developed?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
4. DEVELOPMENT OBLIGATIONS
- 4.1. Development Schedule. You must develop, open and operate all Restaurants listed in the Development Schedule. You must develop and open each Restaurant in strict compliance with the opening dates set forth in the Development Schedule. We may, in our sole discretion, extend one or more opening dates listed in the Development Schedule if you demonstrate to our satisfaction that you used best efforts to comply with the opening date and the need for the extension is due to unforeseeable delays rather than your lack of diligence or funding. The opening date listed in the Development Schedule for a given Restaurant may be earlier than the opening date required under the terms of the associated Franchise Agreement. In order to comply with the Development Schedule you must open each Restaurant by the opening date listed in the Development Schedule even if such date is earlier than the opening date required by the associated Franchise Agreement.
- 4.2. Site Selection. You must select a specific site within the Development Territory for each Restaurant in compliance with our then-current site selection criteria. Each site you select is subject to our prior approval in accordance with the applicable Franchise Agreement.
- 4.3. Franchise Agreements. You must sign a separate Franchise Agreement for each Restaurant. You must sign the Initial Franchise Agreement for your first (1st) Restaurant at the time you sign this Agreement. We will not review proposed sites for a Restaurant until you sign the applicable Franchise Agreement for that Restaurant. Each Franchise Agreement shall be our then-current form of CHOP5 Salad Kitchen Franchise Agreement, the terms of which may vary materially and substantially from the terms of the Initial Franchise Agreement; provided, however, that the royalty fee will not exceed that imposed under the Initial Franchise Agreement. The development fee paid pursuant to §5 shall be deemed to include and satisfy the initial franchise fee imposed under each Franchise Agreement you sign for a Restaurant identified in the Development Schedule. You have no right to construct or operate a Restaurant until the parties have signed the Franchise Agreement and all ancillary agreements for that Restaurant. You must develop, open and operate each Restaurant in compliance with the Franchise Agreement and the Manual.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, the total number of restaurants to be developed by an area developer is found within the Development Schedule.
Specifically, Section 4.1 of the Area Development Agreement outlines the franchisee's obligation to develop, open, and operate all restaurants as listed in the Development Schedule. This schedule dictates the opening dates for each restaurant, and franchisees must strictly adhere to these dates. Chop5 Salad Kitchen may, at its discretion, extend these dates if the franchisee demonstrates diligent effort and the delay is due to unforeseeable circumstances beyond their control.
Furthermore, Section 4.3 states that the franchisee must sign a separate Franchise Agreement for each restaurant they plan to develop. Chop5 Salad Kitchen will not review proposed sites for a restaurant until the franchisee has signed the corresponding Franchise Agreement. The development fee covers the initial franchise fee for each restaurant outlined in the Development Schedule. Therefore, the Development Schedule, referenced in multiple sections, is where a prospective franchisee can find the total number of restaurants they are obligated to develop under the Area Development Agreement.