Is an additional Initial Franchise Fee required when executing a franchise agreement for each Franchised Business opened under a Kitchen Solvers Development Agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be required to enter into our then-current form of franchise agreement for each Franchised Business you wish to open under your Development Agreement, but you will not be required to pay any additional Initial Franchise Fee at the time you execute each of these franchise agreements. If you enter into a Development Agreement, you must execute our current form of Franchise Agreement for the first Franchised Business we grant you the right to open within your Development Area concurrently with the Development Agreement.
The Development Fee will be deemed fully earned upon execution of your Development Agreement.
Source: Item 5 — Initial Fees (FDD pages 11–13)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, if you are granted the right to enter into a Development Agreement, you will not be required to pay an additional Initial Franchise Fee when you execute a franchise agreement for each Franchised Business you open under the Development Agreement. Instead, you will pay a one-time Development Fee when signing the Development Agreement. This fee compensates Kitchen Solvers for granting you the rights to develop multiple locations within a specific area. The Development Fee is deemed fully earned by Kitchen Solvers upon execution of the Development Agreement.
The Development Fee varies depending on the number of Franchised Businesses you are obligated to open. For the right to develop two Franchised Businesses, the fee is $105,000. It is $140,000 for three businesses, $170,000 for four businesses, and $200,000 for five businesses. The minimum number of Franchised Businesses you may be permitted to open under a Development Agreement is two, with a maximum of five anticipated.
However, concurrently with the Development Agreement, you must execute Kitchen Solvers' current form of Franchise Agreement for the first Franchised Business you are granted the right to open within your Development Area. This means that while you avoid paying an additional Initial Franchise Fee for subsequent locations, the initial agreement for the first location is signed at the same time as the Development Agreement.