CHOP5 Salad Kitchen
Bottom line
- Total investment $536K – $996K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.8M/year. Estimated payback in 1.4 years.
- Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 23 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one CHOP5 Salad Kitchen unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 CHOP5 Salad Kitchen units return on equity?
Equity IRR · 5-yr
34.0%
4.32× MOIC
Year-1 DSCR
2.39×
EBITDA ÷ debt service
Equity required
$5.6M
on $15.2M purchase
Total debt
$9.5M
SBA $5.0M + senior + seller note
Overview
About
CHOP5 franchisees operate fast-casual salad and bowl restaurants, managing food preparation, inventory, staffing, and point-of-sale operations in limited-service environments. Daily operations involve customizable salad/bowl assembly, ingredient sourcing and management, and drive-through or dine-in/takeout service delivery.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
CHOP5 presents material risk due to extremely small franchise network (3 units), unprotected territory, unverified financial claims, and unclear corporate financial health despite attractive per-unit profitability metrics.
Score breakdown · what drove the 55 / 100 rating
- 01MINOROnly 3 units system-wide suggests minimal scale, market validation, and support infrastructure
- 02MEDNo disclosed growth trajectory despite averaging $1.78M revenue per unit — indicates stagnation or contraction risk
- 03MINORUnprotected territory creates direct competition risk from other CHOP5 franchisees and company-owned locations
- 04MINORHigh investment range ($535K-$996K) with only 3 reference units limits ability to validate unit economics
- 05HIGHGoing Concern = False status suggests potential corporate financial instability or operational challenges
- 06MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify claimed $1.78M average revenue
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
8 numbers
One-time purchase · CSV download · Validation questions included
FDD download
CHOP5 Salad Kitchen · FDD (2024) PDF