What fees must a Chop5 Salad Kitchen franchisee pay to transfer their franchise?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
--------------------------------------------------------------------------------------------------------------|--|--|--|--| | PROVISION | SECTIONS IN AGREEMENT FA: 19.2 | SUMMARY Transferee must: meet our qualifications; successfully complete training (or arrange to do so); obtain required licenses and permits; agree in writing to assume your obligations under agreements relating to the Business; sign then-current form of franchise agreement for remainder of term or, at our option, assume your Franchise Agreement; and remodel Restaurant and upgrade furniture, fixtures and equipment to current standards within 12 months after transfer or such shorter period of time we specify. You must: be in compliance with Franchise Agreement; assign lease (if applicable); pay transfer fee; subordinate transferee's ongoing payments owed to you (if any) to transferee's financial obligations owed to us; and sign general release (subject to state law). We must notify you that we will not exercise our right of first refusal. | | | | | | m. Conditions for our approval of transfer | ADA: 8.2 | If a Transfer qualifies as a Minority Interest Transfer, we do not impose any conditions for transfer other than: (a) we must approve the new owner as meeting our criteria; and (b) you must be in compliance with Franchise Agreement. Transferee must: meet our qualifications; successfully complete training (or arrange to do so); and sign then-current form of area development agreement for remainder of term or, at our option, assume your ADA. You must: be in compliance with all Franchise Agreements and ADA; assign all Franchise Agreements to same purchaser unless we agree to contrary (or at our option, transferee must sign then-current form of franchise agreement); comply with transfer provisions under Franchise Agreements; pay transfer fee; and sign general release (subject to state law). We must notify you that we will not exercise our right of first refusal. If a Transfer qualifies as a Minority Interest Transfer, we do not impose any conditions for transfer other than: (a) we must approve the new owner as meeting our criteria; and (b) you must be in compliance with the ADA and all Franchise Agreements. | | | | | | n.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 41–45)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, a franchisee must pay a transfer fee to transfer their franchise. The specific amount of this transfer fee is not specified in Item 17.
In addition to paying the transfer fee, the franchisee must be in compliance with the Franchise Agreement, assign the lease (if applicable), subordinate the transferee's ongoing payments owed to the franchisee (if any) to the transferee's financial obligations owed to Chop5 Salad Kitchen, and sign a general release (subject to state law).
The transferee must also meet Chop5 Salad Kitchen's qualifications, successfully complete training (or arrange to do so), obtain required licenses and permits, agree in writing to assume the franchisee's obligations under agreements relating to the business, sign the then-current form of franchise agreement for the remainder of the term or, at Chop5 Salad Kitchen's option, assume the Franchise Agreement, and remodel the Restaurant and upgrade furniture, fixtures, and equipment to current standards within 12 months after the transfer or such shorter period of time Chop5 Salad Kitchen specifies.
Prospective franchisees should inquire about the specific amount of the transfer fee, as well as any other potential costs associated with transferring a Chop5 Salad Kitchen franchise.