Can Chop5 Salad Kitchen require franchisees to participate in a gift card program?

According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, franchisees must participate in any gift card program that Chop5 Salad Kitchen establishes. Franchisees are required to honor all gift cards, including those purchased from Chop5 Salad Kitchen or another franchisee. However, franchisees cannot offer or sell gift cards that Chop5 Salad Kitchen has not approved.

Chop5 Salad Kitchen has the right to determine how gift card proceeds are divided or accounted for. They can also require that gift card proceeds be paid to them or deposited into a trust account that they control, for later distribution to the restaurant where the gift card is redeemed. Additionally, Chop5 Salad Kitchen has the right to retain proceeds from unredeemed gift cards.

Furthermore, Chop5 Salad Kitchen may periodically develop and implement loyalty programs, gift card programs, and other system-wide programs that franchisees must fully participate in if designated as mandatory. To participate, franchisees must comply with all policies and procedures, purchase and utilize all necessary equipment, software, mobile applications, and technology, and pay all associated fees and costs. Franchisees must also pay Chop5 Salad Kitchen, its affiliate, or a designated third party all program fees and other specified amounts. These Program Participation Rules may be set forth in the Manual and are subject to change at any time, requiring franchisees to comply with these changes.