Does the Kitchen Solvers agreement allow for arbitration or litigation to be conducted on a class-wide basis?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
checks are governed by Minn. Stat. 604.113, which puts a cap on $30 on service charges.
Item 17
With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the Franchise Agreement.
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document, the information provided does not explicitly address whether arbitration or litigation can be conducted on a class-wide basis. However, the document includes addenda for specific states like Minnesota, North Dakota, and New York, which modify certain provisions of the standard franchise agreement to comply with state laws. These modifications often relate to litigation venues, jury trial waivers, and franchisee rights. For instance, Minnesota law prohibits Kitchen Solvers from requiring litigation to be conducted outside of Minnesota or from including terms that reduce a franchisee's rights under Minnesota Statutes, Chapter 80C. Similarly, North Dakota law voids provisions that require franchisees to consent to jurisdiction outside of North Dakota or to the application of other states' laws, although it allows for arbitration outside of North Dakota. New York law states that any provision inconsistent with the New York General Business Law, Article 33, Sections 680-695 may not be enforceable. These state-specific addenda suggest that the enforceability and terms of certain clauses, including those related to dispute resolution, can vary depending on the franchisee's location.
Given the absence of a direct statement about class-wide arbitration or litigation, prospective Kitchen Solvers franchisees should carefully review the addenda applicable to their state to understand how state laws might modify the standard agreement. It is crucial to consult with a legal professional to interpret these provisions and understand their implications fully. The interplay between the standard agreement and state-specific addenda can significantly affect a franchisee's rights and obligations, especially in dispute resolution.
To gain clarity on Kitchen Solvers's policy regarding class-wide arbitration or litigation, a prospective franchisee should directly ask the franchisor about this issue during their due diligence. Specifically, they should inquire whether the franchise agreement or any addenda contain provisions that explicitly prohibit or permit class-wide arbitration or litigation. Understanding the franchisor's stance on this matter is essential for assessing the potential risks and costs associated with resolving disputes within the Kitchen Solvers franchise system.