Under what conditions can Chop5 Salad Kitchen designate an Interim Manager for a Restaurant?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
employer. You must also post a conspicuous notice for employees in the back-of-house area explaining your franchise relationship with us and that you (and not we) are the employee's sole employer. We may prescribe the form and content of this notice.
- 8.4. Interim Manager. We have the right, but not the obligation, to designate an individual of our choosing (an "Interim Manager") to manage your Restaurant if either: (a) you fail to appoint an
approved replacement Operating Partner, who has successfully completed all training we require, within 30 days after your Operating Partner ceases to perform the responsibilities of an Operating Partner for any reason; or (b) you fail to cure a material breach before the expiration of the cure period. The Interim Manager will cease to manage your Restaurant at such time that you appoint an approved replacement Operating Partner who has completed training or you cure the material breach, as applicable. If we appoint an Interim Manager, you agree to: (a) pay us a management fee equal to $500 per day during the period of time that the Interim Manager manages your Restaurant; and (b) reimburse us for all Travel
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, Chop5 Salad Kitchen has the right, but not the obligation, to designate an Interim Manager to manage a franchisee's Restaurant under specific circumstances. These circumstances include if the franchisee fails to appoint an approved replacement Operating Partner within 30 days after the current Operating Partner ceases to perform their responsibilities for any reason. The replacement Operating Partner must successfully complete all required training. Chop5 Salad Kitchen may also designate an Interim Manager if the franchisee fails to cure a material breach of the franchise agreement before the expiration of the cure period.
If Chop5 Salad Kitchen appoints an Interim Manager, the franchisee is responsible for covering certain costs. The franchisee must pay Chop5 Salad Kitchen a management fee of $500 per day for the duration the Interim Manager is managing the Restaurant. Additionally, the franchisee must reimburse Chop5 Salad Kitchen for all travel expenses incurred by the Interim Manager.
The Interim Manager will cease managing the Restaurant once the franchisee appoints an approved replacement Operating Partner who has completed the necessary training, or once the franchisee cures the material breach that led to the appointment of the Interim Manager. The Interim Manager bears no liability to the franchisee except in cases of gross negligence or willful misconduct. Chop5 Salad Kitchen is not liable for the actions of the Interim Manager unless Chop5 Salad Kitchen was grossly negligent in appointing the Interim Manager.