What initial onboarding services from Toast are Chop5 Salad Kitchen franchisees required to purchase?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
uter and 16 Port POE Switch
- 1 Toast Printer with Power Supply
- 1 Epsom Label Printer
You must also purchase certain initial onboarding services from Toast. In addition to the basic software subscription, you must purchase the following subscriptions from Toast: Enterprise Data Management; Gift Card Program; Loyalty Program; Online Ordering; Toast Takeout; and Kitchen Display. You may, but need not, purchase the following optional subscriptions from Toast: Marketing; and Third-Party Integration (for thirdparty delivery platforms such as UberEats, Doordash and GrubHub). If you choose not to purchase Toast's Marketing subscription, you must purchase another program that allows you to text market to your database (we currently use a program called Simple Texting).
You must acquire and maintain high-speed Internet access in compliance with our minimum standards and specifications. We may change the components of the Technology Systems from time to time, including your computer system.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–36)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, franchisees must purchase certain initial onboarding services from Toast POS system. These mandatory subscriptions include Enterprise Data Management, Gift Card Program, Loyalty Program, Online Ordering, Toast Takeout, and Kitchen Display.
In addition to these required subscriptions, Chop5 Salad Kitchen franchisees have the option to purchase optional subscriptions from Toast, specifically Marketing and Third-Party Integration (for delivery platforms like UberEats, DoorDash, and GrubHub). However, if a franchisee chooses not to purchase Toast's Marketing subscription, they are obligated to acquire another program that facilitates text marketing to their customer database; currently, Chop5 Salad Kitchen uses Simple Texting for this purpose.
The cost for the computer and point-of-sale system, encompassing upfront license fees, setup fees, onboarding services, software training fees, and data migration fees, is estimated to range from $2,300 to $3,600. Franchisees are also required to pay Toast an ongoing fee of $390 per month (or $4,680 annually) for the necessary subscriptions. This monthly fee covers all required maintenance and updates for the POS system software, while any upgrades will be billed separately at Toast's prevailing rates.