Under what condition will Chop5 Salad Kitchen increase fees based on CPI changes?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
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- CPI Adjustments: All fees expressed as a fixed dollar amount are subject to adjustment based on changes to the Consumer Price Index (CPI) in the United States. We will review these fees every 2 years and may increase the fees based on changes to CPI, but only if the increase to CPI is more than 5% higher than the corresponding CPI in effect on: (a) the effective date of the Franchise Agreement (for the initial fee adjustment); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments). We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, certain fees are subject to Consumer Price Index (CPI) adjustments. Chop5 Salad Kitchen will review fixed-dollar amount fees every two years.
Chop5 Salad Kitchen may increase these fees based on CPI changes, but only if the CPI increase is more than 5% higher than the corresponding CPI in effect. The reference CPI is determined by either the effective date of the Franchise Agreement for the initial fee adjustment, or the date of the last fee adjustment for subsequent adjustments.
Chop5 Salad Kitchen will notify franchisees of any CPI adjustment at least 60 days before the adjustment takes effect. This allows franchisees time to prepare for the change. This adjustment applies only to fees expressed as a fixed dollar amount.