Does Kitchen Solvers advise franchisees that they or their affiliates may receive consideration from suppliers?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase from approved vendors and suppliers all new cabinet units, doors, drawer fronts, panels, trim and molding required for installing new cabinets or cabinet refacing, flooring, the components of the closet organizer systems, and other supplies, products, and equipment, as we designate, (sometimes referred to in this Agreement as "Primary Products and Services"). The Primary Products and Services are those items that we determine meet our standards and specifications of quality required to protect the valuable goodwill and uniformity symbolized by and associated with the Trademarks and Business. You acknowledge that we may designate a single source of supply for Primary Products and Services and that we, a third party, or an affiliate of ours, may be that source. Upon request, we will provide and update you with a written list of the Primary Products and Services and other approved vendors, products and services, which list will include approved vendors and suppliers for many of the items. The approved vendors and suppliers may be "Preferred Vendors," as further noted in Subparagraph 16.N of this Agreement. ALTHOUGH APPROVED BY US, WE MAKE NO WARRANTY AND EXPRESSLY DISCLAIM ALL WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, WITH RESPECT TO PRODUCTS, SERVICES, EQUIPMENT, SUPPLIES, FIXTURES, FURNISHINGS OR OTHER APPROVED PRODUCTS. We reserve the right to limit the number of vendors and suppliers and we and our affiliates reserve the right to become an approved or designated supplier (including, as stated above, an exclusive supplier) of any product, item and/or service at any time in the future without restriction. You must pay the then-current price in effect for all purchases you make from us, our affiliate, or any third party vendor we designate. You may
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees are required to purchase certain products from approved vendors and suppliers. Kitchen Solvers may designate a single source for these 'Primary Products and Services,' which include new cabinet units, doors, flooring, and closet organizer components.
The FDD states that Kitchen Solvers, a third party, or an affiliate of Kitchen Solvers may be that designated source. Franchisees must pay the current price for all purchases from Kitchen Solvers, its affiliates, or any designated third-party vendor.
This arrangement means Kitchen Solvers or its affiliates could potentially profit from franchisee purchases through these designated supplier relationships. While Kitchen Solvers approves these vendors, they disclaim all warranties regarding the products, including merchantability and fitness for a particular purpose. This setup is common in franchising, allowing franchisors to maintain quality control and potentially generate additional revenue, but it also places the onus on the franchisee to evaluate the supplier's products and pricing independently.