For a Chop5 Salad Kitchen franchise, who will assist with the site survey process?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
ge for a flat fee of $15,000 (subject to change).
-
- Site Survey: You must procure a site survey for the premises for your Restaurant. The Real Estate Company will assist you with this process. This estimate assumes you only need 1 site survey. If you need to obtain site surveys for more than one property, your initial investment may be higher.
-
- Real Estate: This estimate assumes you lease your premises. Rent varies depending on the size of the premises, its location, landlord contributions and the requirements of individual landlords. We anticipate most Restaurants will range in size from 1,700 to 2,500 square feet with rent ranging from $2,000 to $8,750 per month. Landlords typically require a security deposit equal to 1- or 2-months' rent and may, in addition, require payment in advance of the first and/or last (or more) month's rent. The total estimated initial investment shown in the chart above includes 1 month's security plus 3 months' rent. Some franchisees may choose to purchase the real estate. The cost to purchase real estate varies so widely that we cannot reasonably estimate the cost.
-
- Construction: This estimates the cost for leasehold improvements, including floor covering, wall treatment, counters, ceilings, painting, window coverings, electrical, carpentry and similar work. It also includes the estimated fees paid to contractors.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the Real Estate Company will assist franchisees with the site survey process. The cost for a site survey is estimated to be between $2,000 and $3,000, payable before signing the lease or purchase agreement. This payment is made to the supplier providing the survey.
In addition to procuring site surveys, the Real Estate Company provides other Real Estate Management Services, including selecting and supervising a local real estate broker, educating landlords on the Chop5 Salad Kitchen concept, evaluating potential sites, assessing site feasibility, negotiating letters of intent, reviewing and negotiating lease or purchase contracts, and providing real estate and territory analytics.
Chop5 Salad Kitchen franchisees must contract with the designated Real Estate Company for these services, which are offered for a discounted flat fee of $5,000, although this fee is subject to change. This fee is paid at the time the franchisee signs the lease or purchase agreement. The FDD also mentions a Project Manager who assists with other aspects of the restaurant's development, such as layout, design, and construction, for a flat fee of $15,000.