What are the consequences if a Kitchen Solvers franchisee fails to pay amounts due to Kitchen Solvers or its affiliates?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
we seek to enforce this Agreement. The parties agree that each of the foregoing covenants will be construed as independent of any other covenant or provision of this Agreement.
11. DEFAULT AND TERMINATION
The following provisions apply with respect to default and termination:
- A. Defaults. You will be in default hereunder if we determine that you or any Personal Guarantor has breached any of the terms of this Agreement or any other agreement between you and us or our affiliates, which without limiting the generality of the foregoing, includes (i) voluntary abandonment of your Business, (ii) making any false report to us, (iii) failure to submit any required report, (iv) failure to pay when due any amounts required to be paid to us or any of our affiliates whether pursuant to this Agreement or otherwise or to any third party (including vendors and suppliers) as required by this Agreement, (v) conviction of you or any Personal Guarantor (or pleading no contest to) any felony or an offense that brings or tends to bring any of the Trademarks into disrepute or impairs or tends to impair the goodwill of any of the Trademarks, (vi) failure to abide by our standards and requirements in connection with the operation of your Business, (vii) filing of any tax liens or voluntary or involuntary bankruptcy by or against you or any Personal Guarantor, (viii) your insolvency or any Personal Guarantor's insolvency, (ix) making an assignment or entering into any similar arrangement for the disposition of assets for the benefit of creditors, (x) any unauthorized assignment or transfer of your Business, this Agreement or the stock of franchisee, (xi) any breach of the noncompete covenants or (xii) failure to meet any requirements or specifications we establish with respect to product and service quality, sales or installation procedures, conditions of materials used, or use of approved products and services.
- B. Termination by Us. We have the right to terminate this Agreement in accordance with the following provisions:
Termination After Opportunity to Cure. Except as otherwise provided in this Subparagraph 11.B: (i) you will have thirty (30) days from the date of a written notice of default to cure any default under this Agreement; (ii) your failure to cure a default within the thirty (30)-day period will provide us with good cause to terminate this Agreement; (iii) the termination will be accomplished by mailing or delivering to you written notice of termination that will identify the grounds for the
termination; and (iv) the termination will be effective thirty (30) days after the date of the written notice of termination.
Immediate Termination With No Opportunity to Cure.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, failure to pay amounts due to Kitchen Solvers or its affiliates constitutes a default under the agreement. This includes failing to pay any amounts required, whether pursuant to the Franchise Agreement or otherwise.
Specifically, if a Kitchen Solvers franchisee fails to make required payments, it gives Kitchen Solvers grounds for default. If the default materially impairs the goodwill associated with the Kitchen Solvers trademarks, the franchisee has only 24 hours after written notice to cure the default. If the franchisee does not cure the default within this 24-hour period, Kitchen Solvers can terminate the agreement immediately upon written notice.
Upon termination of the Franchise Agreement, all rights to use the Kitchen Solvers trademarks and conduct business under those trademarks revert to Kitchen Solvers. The franchisee must immediately pay all sums due to Kitchen Solvers, its affiliates, or designees, and cease all use of the trademarks and copyrighted materials. The franchisee must also return all copies of manuals, training videos, and licensed software. The franchisee is also obligated to remove all signage and materials bearing Kitchen Solvers' trademarks from their business premises within 30 days to differentiate their business from authorized Kitchen Solvers locations.