Will Chop5 Salad Kitchen provide franchisees with a financial accounting of the Brand Fund?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
All monies deposited into the Brand Fund that are not used in the fiscal year in which they accrue will be utilized in the following fiscal year. Any surplus of monies may be invested and we may lend money if there is a deficit. An unaudited financial accounting of the operations of the Brand Fund will be prepared annually and made available to you upon request. During the fiscal year ended December 31, 2023 we did not collect or spend any monies from the Brand Fund.
We assume no direct or indirect liability or obligation to you with respect to the maintenance, direction or administration of the Brand Fund. The Brand Fund is not a trust and we have no fiduciary obligations with respect to our administration of the fund. Once established, we may discontinue the Brand Fund upon 30 days' prior notice.
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, an unaudited financial accounting of the Brand Fund's operations will be prepared annually. This accounting will be made available to franchisees upon request.
For the fiscal year ended December 31, 2023, Chop5 Salad Kitchen did not collect or spend any monies from the Brand Fund. This means that there was no activity in the Brand Fund to account for during that period.
It is important to note that Chop5 Salad Kitchen assumes no direct or indirect liability or obligation to franchisees regarding the maintenance, direction, or administration of the Brand Fund. The Brand Fund is not a trust, and Chop5 Salad Kitchen has no fiduciary obligations in its administration of the fund. Chop5 Salad Kitchen may discontinue the Brand Fund with 30 days' prior notice.