Will Kitchen Solvers compensate a franchisee if Kitchen Solvers engages in activities reserved to them, such as establishing franchises outside the territory?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
thin your Territory during the term of your Franchise Agreement.
You expressly understand and agree that we and our affiliates reserve all rights not expressly granted to you under the Franchise Agreement and, if applicable, the Development Agreement. We and/or our affiliates reserve the right to: (a) establish franchises or company-owned businesses under the Marks anywhere outside the Territory; (b) establish franchises or company owned businesses under marks other than KITCHEN SOLVERS® both within and outside the Territory; (c) to distribute products or services through alternative channels of distribution, including by mail order, catalog, or the Internet (or any other existing or future form of electronic commerce) under any mark, including KITCHEN SOLVERS® (d) use the KITCHEN SOLVERS® and any and all other marks to market and advertise within the Territory; and (e) to merge or affiliate with any other brand, including a competitive brand with units operating in the Territory. We also reserve the right to develop and operate and to franchise or license others to develop and operate the KITCHEN SOLVERS® Business at any location outside your Territory. We and/or our affiliates may engage in these activities without compensation to you.
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 Territory and the Development Area. For purposes of this Agreement, the term Non-Public Access Area shall mean military bases, government institutions, and other areas that are not accessible to the general public.
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 your Territory and, if you sign a Development Agreement, in your 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, in our sole discretion, offer you the option to perform work for one or more Multi-Project Customers in the Territory and in the Development Area (if applicable), but we may also provide such services ourselves or through an affiliate, or we may contract with a third-party including another KITCHEN SOLVERS® franchisee, to perform such services in the Territory and in the Development Area (if applicable) without providing you with any compensation.
Source: Item 12 — Territory (FDD pages 31–33)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, Kitchen Solvers retains specific rights regarding business operations and development, both within and outside a franchisee's territory, without providing compensation to the franchisee. Kitchen Solvers reserves the right to establish franchises or company-owned businesses under marks other than KITCHEN SOLVERS®, distribute products or services through alternative channels, market and advertise within the territory, and merge or affiliate with any other brand, even a competitive one operating within the franchisee's territory. They also reserve the right to develop and operate Kitchen Solvers businesses outside the franchisee's territory.
This means that a Kitchen Solvers franchisee may experience competition from other channels or brands controlled by Kitchen Solvers, even within their designated territory. The franchisee will not receive any compensation from Kitchen Solvers for these activities. This is a significant consideration for prospective franchisees, as it highlights the non-exclusive nature of the territory and the potential for internal competition.
Furthermore, Kitchen Solvers reserves the right to negotiate and enter into agreements with Multi-Project Customers, providing services under the Kitchen Solvers marks even if those customers are located within a franchisee's territory. A "Multi-Project Customer" is defined as one contracting for fifty or more projects for Kitchen Solvers services. While Kitchen Solvers may offer the franchisee the option to perform work for these customers, they are not obligated to do so and may choose to provide the services themselves, through an affiliate, or through another franchisee, without compensating the original franchisee. This clause further emphasizes the limited control a franchisee has over business opportunities within their territory and the potential for Kitchen Solvers to directly compete for large-scale projects.
In summary, while Kitchen Solvers grants franchisees the right to operate within a specific territory, they retain considerable rights to operate and expand the Kitchen Solvers business through various channels, without any obligation to compensate the franchisee. Prospective franchisees should carefully consider these factors and evaluate the potential impact of internal competition on their business's profitability and growth.