Does the Kitchen Solvers agreement state that the location for venue is reasonable and beneficial to the System?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to develop, open and operate, and to license others the right to develop, open and operate, Businesses located in Non-Public Access Areas, including within the Development Area. For purposes of this Agreement, the term Non-Public Access Area shall mean military bases, government institutions, and other areasthat are not accessible to the general public.
- 1.5.2 We and/or our affiliates reserve the right to negotiate and enter into agreements with "Multi-Project Customers" and to, directly or indirectly (including through franchisees and licensees) provide KITCHEN SOLVERS® services under the Marks, even if those customers are located in the Development Area. The term "Multi-Project Customer" means a customer that wishes to contract for the completion of fifty or more projects for KITCHEN SOLVERS® services, including, without limitation owners or managers of apartment and/or condominium buildings, residential home builders and/or developers, and hotel chains. We may provide such services to Multi-Project Customers ourselves or through an affiliate, or we may contract with a
third-party including another KITCHEN SOLVERS® franchisee, to perform such services in the Development Area without providing you with any compensation. If you qualify to service a Multi-Project Customer and we offer you the option to perform such work, you will be required to comply with our designated standards, specifications and procedures, and you may be required to enter into our then-current form of Multi-Project Customer Participation Agreement. We retain the right to set and modify the parameters for any Multi-Project Customer program, including the right to terminate your participation in the program, at any time.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document, the franchise agreement does not explicitly state that the location for the venue is reasonable and beneficial to the System. However, the document does mention the franchisor's right to develop businesses in "Non-Public Access Areas" and to negotiate agreements with "Multi-Project Customers," even within a franchisee's Development Area. This suggests that Kitchen Solvers retains some control over where business is conducted, and can offer services to Multi-Project Customers themselves or through an affiliate, or they may contract with a third-party including another Kitchen Solvers franchisee, to perform such services in the Development Area without providing compensation.
This could mean that Kitchen Solvers can operate or license businesses in locations that might compete with a franchisee's location, particularly in non-public areas like military bases or government institutions. Additionally, Kitchen Solvers reserves the right to work with large, multi-project customers, potentially impacting the franchisee's business within their designated area. The franchisee may be required to comply with Kitchen Solver's standards and procedures if they qualify to service a Multi-Project Customer.
Prospective franchisees should seek clarification from Kitchen Solvers regarding the criteria used to determine locations, the potential impact of non-public access venues and multi-project customers on their business, and the mechanisms in place to ensure fairness and minimize competition between the franchisor and its franchisees. Understanding these factors is crucial for assessing the viability and potential profitability of a Kitchen Solvers franchise.