For Chop5 Salad Kitchen, are all fees payable directly to the franchisor?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
Nature and Manner of Payment: All fees are imposed by and payable to us except: (a) you spend the Local Advertising Commitment directly with local suppliers; and (b) you pay the cooperative advertising fee directly to your advertising cooperative (we may instead require you to pay this fee to us, in which case we will remit the fee to the cooperative on your behalf). All fees are nonrefundable and uniformly imposed. You must sign an ACH Authorization Form (attached to the Franchise Agreement as ATTACHMENT "E") permitting us to electronically debit your designated bank account for all amounts owed to us and our affiliates (other than fees due within 15 days after signing the Franchise Agreement). You must deposit all Gross Sales into the bank account and ensure sufficient funds are available for withdrawal before each due date. You are responsible for all taxes imposed on you or us based on products, intangible property (including trademarks) or services we provide to you.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, not all fees are payable directly to the franchisor. While most fees are imposed by and payable to Chop5 Salad Kitchen, there are a couple of exceptions.
The first exception is the Local Advertising Commitment, which franchisees spend directly with local suppliers. The second exception involves the cooperative advertising fee, which franchisees pay directly to their advertising cooperative. However, Chop5 Salad Kitchen retains the option to require franchisees to pay the cooperative advertising fee to them, in which case Chop5 Salad Kitchen will remit the fee to the cooperative on the franchisee's behalf.
All fees are nonrefundable and uniformly imposed. Franchisees must sign an ACH Authorization Form, allowing Chop5 Salad Kitchen to electronically debit their bank account for amounts owed. Franchisees are responsible for all taxes imposed on them or Chop5 Salad Kitchen based on products, intangible property (including trademarks), or services Chop5 Salad Kitchen provides.