Is prior written approval required from Chop5 Salad Kitchen to relocate a restaurant?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
the Site Selection Area described in Part C of ATTACHMENT "A" to your Franchise Agreement.
You may relocate your Restaurant with our prior written approval, which we will not unreasonably withhold. If we allow you to relocate, you must: (a) engage the Real Estate Company to provide Real Estate Management Services and pay the associated fee; (b) obtain our approval of the site for your new Restaurant within the Site Selection Area (but outside any territory granted or reserved to us, our affiliate or any other franchisee); (c) comply with our then-current site selection and development requirements; (d) remove trade dress and alter the premises of the closed (i.e., former) Restaurant to eliminate any resemblance to a CHOP5 Salad Kitchen; (e) pay us a relocation fee of $5,000 at the time we approve your request to relocate; (f) pay the Project Manager a $15,000 project manag
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, a franchisee must obtain prior written approval from Chop5 Salad Kitchen to relocate their restaurant. This approval will not be unreasonably withheld by Chop5 Salad Kitchen.
If Chop5 Salad Kitchen allows a franchisee to relocate, the franchisee must engage a Real Estate Company for Real Estate Management Services and pay their associated fee. The franchisee must also obtain Chop5 Salad Kitchen's approval of the new site, ensuring it is within the Site Selection Area but outside any territory granted or reserved by Chop5 Salad Kitchen or its affiliates. The franchisee must comply with Chop5 Salad Kitchen's then-current site selection and development requirements.
Additionally, the franchisee is responsible for removing trade dress and altering the former restaurant premises to eliminate any resemblance to a Chop5 Salad Kitchen. A relocation fee of $5,000 is due to Chop5 Salad Kitchen at the time the relocation request is approved, and a $15,000 project management fee must be paid to the Project Manager. The franchisee must open the restaurant at the new site and resume operations within 30 days after closing the restaurant at the former site, unless the restaurant was destroyed or condemned, in which case the franchisee has 180 days to relocate and resume operations.