Does Chop5 Salad Kitchen specify how often they may change the required goods and services?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
Source-Restricted Purchases and Leases - Generally
You must purchase or lease certain "source-restricted" goods and services for the development and operation of your Restaurant. By "source-restricted", we mean the good or service must meet our specifications and/or must be purchased from an approved or designated supplier (in some cases, an exclusive designated supplier, which may be us or an affiliate). The Manual includes our specifications and supplier list. We notify you of changes to our specifications and suppliers by email, updates to the Manual or other means of communication.
Supplier Criteria
Our criteria for evaluating a supplier include standards for quality, delivery, performance, design, appearance and price of the product or service as well as the dependability, reputation and financial viability of the supplier. Upon request, we will provide you with any objective specifications pertaining to our evaluation of a supplier or product, although certain important subjective criteria (e.g., product appearance, taste, design, functionality, etc.) are important to our evaluation but cannot be described in writing.
If you wish to purchase or lease a source-restricted item from a non-approved supplier, you must send us a written request for approval and submit all additional information we request. We may require that you send us samples from the supplier for testing. We may also require that we be allowed to inspect the supplier's facility.
We will use best efforts to notify you of our decision within 45 days after we receive your request for approval and all additional information and samples we require. If we fail to issue our written approval within the 45-day period, we are deemed to have disapproved the proposed supplier. We may periodically re-inspect the facilities and products of an approved supplier and revoke our approval if the supplier fails to meet our then-current criteria. You must reimburse us for all costs we incur to review products and suppliers you propose.
Current Source-Restricted Items
We estimate nearly 70% to 95% of the total purchases and leases to establish your Restaurant and 35% to 60% of ongoing operating expenses will consist of source-restricted goods or services, as further described below.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 41)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, Chop5 Salad Kitchen can change the required goods and services for the restaurant. The FDD states that Chop5 Salad Kitchen will notify franchisees of changes to specifications and suppliers by email, updates to the manual, or other means of communication.
As a franchisee, you are required to purchase or lease certain "source-restricted" goods and services that meet Chop5 Salad Kitchen's specifications from approved or designated suppliers. These source-restricted items can make up a significant portion of your expenses, with initial purchases and leases estimated to be 70% to 95% of the total, and ongoing operating expenses estimated at 35% to 60%.
If a franchisee wants to use a non-approved supplier, they must get written approval from Chop5 Salad Kitchen. Chop5 Salad Kitchen will evaluate the supplier based on criteria like quality, delivery, performance, design, appearance, price, dependability, reputation, and financial viability. The franchisee may need to provide samples and allow facility inspections, and they will have to cover the costs Chop5 Salad Kitchen incurs for the review. Chop5 Salad Kitchen has 45 days to make a decision; otherwise, the supplier is considered disapproved. Chop5 Salad Kitchen can also re-inspect and revoke approval from previously approved suppliers if they no longer meet the current criteria.