Is Chop5 Salad Kitchen required to create a franchise advisory council?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
discontinue the Brand Fund upon 30 days' prior notice.
Advisory Council (§12)
We may, but need not, create a franchise advisory council to provide us with suggestions to improve the System, including matters such as marketing, operations and new product or service suggestions. We would consider all suggestions in good faith, but would not be bound by them. The council would be established and operated according to rules and regulations we periodically approve, including procedures governing the selection of council representatives to communicate with us on matters raised by the council. You would have the right to be a member of the council as long as you comply with your Franchise Agreement and do not act in a disruptive, abusive or counter-productive manner, as determined by us in our discretion. As a member, you would be
entitled to all voting rights and privileges granted to other members of the council. Any company-owned Restaurant would also be a member of the council. Each member would be granted 1 vote on all matters on which members are authorized to vote.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–36)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, Chop5 Salad Kitchen is not required to create a franchise advisory council. However, Chop5 Salad Kitchen may choose to create one to provide suggestions to improve the Chop5 Salad Kitchen system. These suggestions could include marketing, operations, and new product or service ideas. Chop5 Salad Kitchen would consider all suggestions in good faith, but would not be bound by them.
The advisory council would be established and operated according to rules and regulations Chop5 Salad Kitchen periodically approves. These rules include procedures governing the selection of council representatives to communicate with Chop5 Salad Kitchen on matters raised by the council. Franchisees in good standing would have the right to be a member of the council as long as they comply with their Franchise Agreement and do not act in a disruptive, abusive or counter-productive manner, as determined by Chop5 Salad Kitchen.
As a member of the advisory council, a franchisee would be entitled to all voting rights and privileges granted to other members of the council. Any company-owned Chop5 Salad Kitchen restaurant would also be a member of the council. Each member would be granted 1 vote on all matters on which members are authorized to vote. Chop5 Salad Kitchen would have the power to form, change, or dissolve the advisory council at its discretion.