Who bears the expense when Kitchen Solvers directs a franchisee to change Trademarks?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not make any changes or substitutions to Trademarks unless directed by us in writing. We reserve the right to change the Trademarks at any time. Upon receipt of our notice to change the Trademarks, you must cease using the former Trademarks and commence using the changed Trademarks, at your expense. In the limited circumstance that we require you to change the Trademarks in response to a third party claim that its rights to use the Trademarks are superior to our rights, you must make the changes at your expense, except that we will reimburse you for any new signage that we determine is necessary, provided you have cooperated with any action we undertake with regard to the third party claim.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees generally bear the expense of changing trademarks when directed by Kitchen Solvers. The FDD states that upon receiving notice to change the Trademarks, the franchisee must cease using the former Trademarks and begin using the changed Trademarks at their own expense. This includes updating signage, marketing materials, and other branded items to reflect the new Trademarks. This requirement ensures that all Kitchen Solvers franchises maintain a consistent brand image, but it also means franchisees must be prepared to cover these costs.
However, there is a specific exception where Kitchen Solvers will reimburse the franchisee for new signage. This occurs only when the trademark change is required due to a third-party claim asserting superior rights to the Trademarks. In this case, Kitchen Solvers will cover the cost of new signage, provided the franchisee has cooperated with any action Kitchen Solvers undertakes regarding the third-party claim. This exception offers some financial protection to franchisees when trademark disputes arise that are outside of their control.
In summary, while Kitchen Solvers franchisees are typically responsible for the expenses associated with trademark changes, Kitchen Solvers assumes responsibility for new signage costs when the change is due to a third-party claim, and the franchisee has cooperated with Kitchen Solvers' actions related to that claim. This policy balances the need for brand consistency with the potential financial burden on franchisees due to legal challenges.