How often does Chop5 Salad Kitchen review fees for CPI adjustments?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
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- CPI Adjustments: All fees expressed as a fixed dollar amount are subject to adjustment based on changes to the Consumer Price Index (CPI) in the United States. We will review these fees every 2 years and may increase the fees based on changes to CPI, but only if the increase to CPI is more than 5% higher than the corresponding CPI in effect on: (a) the effective date of the Franchise Agreement (for the initial fee adjustment); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments). We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, Chop5 Salad Kitchen reviews fees subject to CPI adjustments every 2 years. These adjustments are based on changes to the Consumer Price Index (CPI) in the United States.
However, Chop5 Salad Kitchen will only increase fees if the CPI increase is more than 5% higher than the CPI in effect either on the effective date of the Franchise Agreement for the initial fee adjustment, or on the date Chop5 Salad Kitchen implemented the last fee adjustment for subsequent adjustments.
Chop5 Salad Kitchen will notify franchisees of any CPI adjustment at least 60 days before the adjustment takes effect. This allows franchisees time to prepare for the change in fees. This policy ensures that fee adjustments are tied to actual economic changes and provides franchisees with advance notice of any increases.