What constitutes a 'false report' that would put a Kitchen Solvers franchisee in default?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, making any false report to the company is grounds for default. This is outlined in Item 22, which details the terms of the franchise agreement, including conditions for default and termination.
Specifically, if Kitchen Solvers determines that a franchisee has breached any term of the agreement, it constitutes a default. One of the listed examples of such a breach is "making any false report" to Kitchen Solvers. The FDD does not provide further details or examples of what might constitute a 'false report.'
This clause is significant because it gives Kitchen Solvers broad discretion to declare a franchisee in default based on the reports they submit. Prospective franchisees should seek clarification from Kitchen Solvers regarding what types of reports are subject to this clause and what standards of accuracy will be applied. Understanding this provision is crucial to avoiding potential default situations.