Is Chop5 Salad Kitchen responsible for selecting the site for my restaurant?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
n. Restaurants are expected to range in size from 1,700 to 2,500 square feet.
We do not select the site for your Restaurant and we do not purchase the premises and lease it to you. You must contract with our designated Real Estate Company to assist you in finding suitable sites. However, you retain ultimately responsibility for finding the approved site for your Restaurant. You must identify and obtain our approval of the site for your Restaurant within 180 days after signing the Franchise Agreement. We may terminate your Franchise Agreement if you fail to meet this deadline.
Your Restaurant must be located within the Site Selection Area identified in Part C of ATTACHMENT "A" to the Franchise Agreement (the "Site Selection Area") and conform to our minimum site selection criteria. You must send us a complete site report that includes all information we require about your proposed site.
We try to approve or disapprove sites you propose within 30 days after we receive all of the requisite materials. Your site is deemed disapproved if we fail to issue our written approval within the 30-day period. We consider the following factors when reviewing proposed sites:
- parking
- visibility, size, condition and characteristics of the building
- traffic counts
- general location
- existence and location of competitive businesses
- general character of the neighborhood
- local demographic information
- various economic indicators
If we approve your site before signing the Franchise Agreement, we will list the address in Part D of ATTACHMENT "A" to the Franchise Agreement. If we do not approve your site before signing, we will send you a Site Approval Notice (in the form attached to the Franchise Agreement as ATTACHMENT "B") within 15 days after approving your site, which will list the address of your approved site.
The Real Estate Company will assist you in reviewing and negotiating the terms of your lease (or your purchase agreement if you purchase the property).
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, the franchisor does not select the site for your restaurant. The FDD states that the franchisee retains ultimate responsibility for finding an approved site. However, Chop5 Salad Kitchen requires franchisees to contract with their designated Real Estate Company for assistance in finding suitable sites.
The franchisee must identify and secure Chop5 Salad Kitchen's approval of the site within 180 days of signing the Franchise Agreement. Failure to meet this deadline may result in the termination of the agreement. The restaurant location must be within the Site Selection Area specified in the Franchise Agreement and conform to Chop5 Salad Kitchen's minimum site selection criteria.
Chop5 Salad Kitchen tries to approve or disapprove proposed sites within 30 days of receiving all required materials. If written approval is not issued within this period, the site is deemed disapproved. Chop5 Salad Kitchen considers factors such as parking, visibility, building size and condition, traffic counts, general location, competition, neighborhood character, local demographics, and economic indicators when reviewing potential sites. If an Area Development Agreement (ADA) is signed, Chop5 Salad Kitchen must approve the site for each restaurant developed, applying their current site selection criteria.