Does the Kitchen Solvers agreement allow for arbitration or litigation to be conducted on a collective basis?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
red into in connection with the Area Development Agreement. In the event of any conflict between this Addendum and the Area Development Agreement, the terms and conditions of this Addendum shall apply.
| YOU: | WE: KS LA CROSSE INVESTMENTS, LLC |
|---|---|
| By: | By: |
| Its: | Its: |
IN WITNESS WHEREOF, the undersigned have executed this Addendum as of the date
Franchisor signs below.
ADDENDUM TO KITCHEN SOLVERS® FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS
To the extent the Illinois Franchise Disclosure Act, Ill. Comp. Stat. §§705/1 – 705/44 applies, the terms of this Addendum apply.
- Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
Illinois law governs the Franchise Agreement.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are set forth in section 19 and 20 of the Illinois Franchise Disclosure Act.
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- Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement.
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- The Illinois Attorney General's Office has required us to defer the collection of any initial franchise fees and/or development fees until we have satisfied our pre-opening obligations to the franchisee and the franchisee has commenced business operations. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
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- The following provision in Section 16.B of the Franchise Agreement is hereby deleted: "You acknowledge that you are entering into this Agreement as a result of your own independent investigation of the KITCHEN SOLVERS franchise program and not as a result of any representation about us made by our shareholders, officers, directors, employees, agents, representatives, independent contractors or franchisees that is contrary to the terms identified in this Agreement or in any disclosure document, prospectus, or other similar document required or permitted to be given to you pursuant to applicable law."
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- Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.
This Addendum is being entered into in connection with the Franchise Agreement. In the event of any conflict between this Addendum and the Franchise Agreement, the terms and conditions of this Addendum shall apply.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document addendums for Illinois, North Dakota, and New York, certain provisions address legal rights and limitations that could be relevant to collective actions, though they do not explicitly discuss the allowance or disallowance of collective arbitration or litigation. These addendums primarily focus on compliance with state-specific franchise laws.
For Illinois franchisees, the addendum states that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. It also clarifies that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. Similarly, the North Dakota addendum voids provisions requiring franchisees to consent to jurisdiction or laws outside North Dakota, but allows for arbitration outside the state. It also ensures that franchisees' rights to a jury trial and to submit matters to North Dakota courts are not diminished.
The New York addendum indicates that any provision inconsistent with New York General Business Law may not be enforceable and that franchisees do not waive claims under this law by signing a general release. These stipulations suggest that Kitchen Solvers franchisees' rights are protected by state laws, which may influence the ability to participate in collective legal actions. However, the FDD does not directly address whether collective arbitration or litigation is permitted or prohibited, so prospective franchisees should seek clarification from Kitchen Solvers regarding this specific aspect of the franchise agreement.