What is the consequence if a Kitchen Solvers franchisee makes misrepresentations in obtaining the franchise?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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."
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document addenda for California, New York, and Washington, certain provisions within the standard franchise agreement that might have held a franchisee accountable for misrepresentations are explicitly removed or modified to protect the franchisee's rights.
Specifically, the addenda for California, New York, and Washington state that the clause acknowledging the franchisee's independent investigation and waiving reliance on franchisor representations outside the FDD is deleted. This suggests that Kitchen Solvers franchisees in these states cannot be held accountable for misrepresentations if they relied on statements made by the franchisor or its representatives that contradict the FDD.
Furthermore, the addendum applicable to all franchisees states that no signed statement can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements. This indicates that Kitchen Solvers franchisees retain the right to pursue claims of misrepresentation or fraud, regardless of any acknowledgments they may have signed. These stipulations collectively aim to protect franchisees from potential misrepresentations made during the franchise sales process, ensuring they can seek legal recourse if they believe they were misled.