Besides intentional misstatements, under what conditions is Kitchen Solvers not liable to the franchisee for information furnished to proposed assignees during a transfer?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require you to prepare and furnish to assignee and/or to us such financial reports and other data relating to your Business and its operations as we, in our sole and exclusive judgment, may deem necessary or appropriate for assignee and/or us to evaluate your Business and the proposed transfer.
You agree that we have the right to confer with proposed assignees and furnish them with information concerning your Business and proposed transfer without being held liable to you, except for intentional misstatements made to the assignee.
Any such information we furnish to proposed assignees is for the sole purpose of permitting the assignees to evaluate your Business and proposed transfer and must not be construed in any manner or form whatsoever as an earnings claim or claims of success or failure.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers has the right to confer with potential assignees and provide them with information about the franchisee's business and the proposed transfer. Kitchen Solvers will not be held liable to the franchisee for this information, except in cases of intentional misstatements made to the assignee.
This means that Kitchen Solvers can share financial reports and other data about the franchisee's business with prospective buyers to help them evaluate the opportunity. However, Kitchen Solvers is not responsible for the outcome of the transfer or any decisions made by the assignee based on this information, as long as they are not intentionally providing false information.
The FDD specifies that any information provided to potential assignees is solely for evaluating the business and the proposed transfer. It should not be interpreted as a guarantee of earnings, success, or failure. This protects Kitchen Solvers from liability related to projections or opinions shared during the transfer process, provided they are acting in good faith and without intent to deceive.