Can Chop5 Salad Kitchen include an administrative fee within the technology fee?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
s and amounts we collect from you and remit to third-party suppliers based on your use of their systems, software, technology or services. The amount of the technology fee may change based on changes to the Technology Systems or prices charged by third-party suppliers with whom we enter into master agreements. We may include within the technology fee a commercially reasonable administrative fee to compensate us for the time,
money and resources we invest in administering the technology platform and associated components, negotiating and managing contracts with third-party licensors, and collecting and remitting technology fees owed to third-party licensors on behalf of franchisees under master license arrangem
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the franchisor has the option to include an administrative fee within the technology fee. This fee is intended to compensate Chop5 Salad Kitchen for the resources it invests in managing the technology platform and related components.
Specifically, the administrative fee covers the time, money, and resources Chop5 Salad Kitchen spends on administering the technology platform, negotiating and managing contracts with third-party licensors, and collecting and remitting technology fees to these licensors on behalf of franchisees under master license agreements. This implies that a portion of the technology fee a franchisee pays could be allocated to Chop5 Salad Kitchen's administrative costs.
The technology fee does not include any payments franchisees make directly to third-party suppliers for components of the Technology Systems. The FDD states that the technology fee is due 10 days after invoicing or as Chop5 Salad Kitchen specifies, and the current technology fee will be listed in the Manual. This means prospective franchisees should consult the Manual to understand the exact amount of the technology fee and whether it includes an administrative component.