Are Chop5 Salad Kitchen franchisees required to use a designated Project Manager?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
iscounted flat fee of $5,000 (subject to change).
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- Project Management Fee: You must hire the project management company we designate (the "Project Manager") to provide project management services relating to the design, construction and development of your Restaurant ("Project Management Services"), including assistance with:
- developing a preliminary layout and design for your Restaurant
- coordinating with your architect and reviewing construction plans and permits
- preparing bids and selecting your general contractor
- monitoring construction progress
- supporting the scheduling and installation of signage, furniture, fixtures and equipment
Most of the underlying services are provided by outside suppliers and you pay these suppliers directly for their services. The Project Manager's role is to oversee and coordinate with the various members of your development team (architects, engineers, general contractor, etc.) in an effort to manage the overall Restaurant development process and allow you to open as quickly as possible. Our designated Project Manager agreed to provide the Project Management Services in exchange for a flat fee of $15,000 (subject to change).
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- Site Survey: You must procure a site survey for the premises for your Restaurant. The Real Estate Company will assist you with this process.
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, franchisees are required to hire a designated Project Manager. The Project Manager's services include developing a preliminary layout and design, coordinating with the franchisee's architect, reviewing construction plans and permits, preparing bids, selecting a general contractor, monitoring construction progress, and supporting the scheduling and installation of signage, furniture, fixtures, and equipment. The Project Manager oversees and coordinates with the development team, including architects, engineers, and the general contractor, to manage the restaurant development process and facilitate a quick opening.
The estimated cost for these Project Management Services is a flat fee of $15,000, which is subject to change. This fee is paid to the Project Manager at the time the franchisee signs the lease or purchase agreement. While most of the underlying services are provided by outside suppliers who are paid directly by the franchisee, the Project Manager's role is to oversee and coordinate these various members of the development team.
This requirement ensures that Chop5 Salad Kitchen restaurants are developed according to the franchisor's standards and specifications. By mandating the use of a designated Project Manager, Chop5 Salad Kitchen aims to streamline the development process, maintain consistency across all locations, and help franchisees open their restaurants efficiently. The $15,000 fee should be factored into the franchisee's initial investment budget.