Under what conditions is attendance at a Chop5 Salad Kitchen conference not mandatory?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
|---|---|---|---|
| Brand Fund Fee | [1st Year] 0.5% of Gross Sales [2nd Year] 1.0% of Gross Sales [Rest of Term] 1.5% of Gross Sales | Same as royalty fee | You must contribute this amount to the Brand Fund we administer. You have no voting rights pertaining to the administration of the Brand Fund, the creation or placement of advertising, or the amount of the brand fund fee. We may increase the brand fund fee by up to 4% on 180 days' prior notice. The maximum total amount we may charge at any given time for the brand fund fee, Local Advertising Commitment and Cooperative Advertising Fee is capped at 8.5%. |
| Local Advertising | [1st Year] 8.0% of Gross Sales | Monthly, as incurred | This is the minimum amount you must spend on advertising and marketing in your local market to promote your Restaurant. This expenditure is in addition to your brand fund fee. We may increase the required expenditures by up to 2% |
| Commitment | [Rest of Term] 3.0% of Gross Sales | on 180 days' prior notice. The maximum total amount we may charge at any given time for the brand fund fee, Local Advertising Commitment and Cooperative Advertising Fee is capped at 8.5%. | |
| Cooperative Advertising Fee | Amount set by cooperative (not to exceed Local Advertising Commitment) | Same as royalty fee | See Note 4. |
| Training Fee | Up to $500 per person per day (plus Travel Expenses for onsite training) | 10 days after invoice | Payable for each person who attends: (a) initial training after you open (new Operating Partner or manager); (b) repeat training (after failing a prior attempt); (c) refresher or supplemental training; (d) remedial training; or (e) additional training you request. You must also reimburse us for Travel Expenses we incur for training onsite at your Restaurant. |
| Conference Registration Fee | Up to $1,000 per person per conference (currently $300 per person per conference) | 10 days after invoice | We may hold conferences to discuss matters affecting franchisees. Attendance is mandatory unless: (a) we designate attendance as optional; or (b) we waive your obligation to attend based on showing of good cause. If you fail to attend a required conference without a waiver from us, you must pay us the conference registration fee despite your non-attendance (we will provide you with a copy of any wri |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, attendance at conferences is generally mandatory for franchisees. However, there are two specific circumstances under which a franchisee is not required to attend. First, Chop5 Salad Kitchen may designate attendance as optional, meaning the franchisor explicitly states that attendance is not required for a particular conference. Second, Chop5 Salad Kitchen may waive the franchisee's obligation to attend if the franchisee can demonstrate good cause for their absence.
If a franchisee is required to attend a conference but fails to do so without obtaining a waiver from Chop5 Salad Kitchen, the franchisee must still pay the conference registration fee. The conference registration fee can be up to $1,000 per person per conference, but is currently $300 per person per conference. This fee covers the costs associated with the conference and compensates Chop5 Salad Kitchen for the franchisee's absence, ensuring they still contribute to the system-wide knowledge sharing and networking that the conference aims to facilitate.
Prospective franchisees should be aware of these conditions and the potential costs associated with non-attendance. Understanding the circumstances under which attendance is mandatory and the process for requesting a waiver is crucial for managing their obligations and avoiding unnecessary fees. It is also important to note that Chop5 Salad Kitchen will provide a copy of any written materials distributed at the conference, even if the franchisee does not attend.