What section of the Chop5 Salad Kitchen Franchise Agreement discusses advertising?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
| OBLIGATION | SECTIONS IN AGREEMENT | DISCLOSURE DOCUMENT ITEM | |
|---|---|---|---|
| j. Warranty and client service | FA: 11.15 | Not Applicable | |
| requirements | ADA: Not Applicable | ||
| k. Territorial development and sales | FA: Not Applicable | Item 12 | |
| quotas | ADA: 4.1 | ||
| l. Ongoing product/service purchases | FA: 11.8 ADA: Not Applicable | Item 8 | |
| m. Maintenance, appearance and | FA: 11.10, 11.11 & 11.12 | Item 11 | |
| remodeling requirements | ADA: Not Applicable | ||
| n. Insurance | FA: 15.1 ADA: Not Applicable | Item 6, Item 7 & Item 8 | |
| o. Advertising | FA: 10 ADA: Not Applicable | Item 6, Item 7 & Item 11 | |
| p. Indemnification | FA: 18.1 ADA: 7 | Item 6 | |
| q. Owner’s participation/management/ | FA: 8 | Item 11 & Item 15 | |
| staffing | ADA: Not Applicable | ||
| r. Records/reports | FA: 15.2 & 15.3 ADA: Not Applicable | Item 6 | |
| s. Inspections/audits | FA: 16 ADA: Not Applicable | Item 6 & Item 11 | |
| t. Transfer | FA: 19 ADA: 8 | Item 17 | |
| u. Renewal | FA: 4 ADA: 4.4 | Item 17 | |
| v. Post termination obligations | FA: 21 ADA: Not Applicable | Item 17 | |
| w. Non-competition covenants | FA: 14 ADA: Not Applicable | Item 17 | |
| x. Dispute resolution | FA: 22 ADA: 10 | Item 17 | |
| y. Franchise Owner Agreement (brand protection covenants, transfer restrictions and financial assurance for owners and spouses) | FA: 9 & ATTACHMENT "D" ADA: 6 | Item 15 |
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, advertising obligations are specified in Section 10 of the Franchise Agreement. Item 11 of the FDD also references advertising in connection with obligations.
The FDD indicates that franchisees must participate in required advertising, promotional, and marketing programs at their own expense. While there isn't a franchisee advertising council currently, the combined fees for the brand fund, Local Advertising Commitment, and Cooperative Advertising Fees are capped at 8.5% of Gross Sales.
Franchisees can create their own advertising materials, but these require prior approval from Chop5 Salad Kitchen, including the media to be used. Chop5 Salad Kitchen has 14 business days to review submissions, and failure to respond within that period constitutes disapproval. Chop5 Salad Kitchen also provides marketing consulting and may offer advertising materials, potentially funded by the brand fund, and maintains a corporate website and local webpage for each restaurant.