What constitutes the 'Minimum Development Obligation' for a Kitchen Solvers franchisee?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
1.2 Minimum Development Obligations
- 1.2.1 You shall comply with the terms and conditions of this Agreement and you shall comply with the following "Minimum Development Obligations": (i) develop and open each Business you are required to develop under this Agreement on or before the opening deadline set forth in Exhibit A attached hereto (the "Opening Deadlines"), and (ii) have open and in operation within the Development Area, not less than the cumulative number of Businesses identified in Exhibit A to this Agreement; (collectively, "the Minimum Development Obligation"). YOU ACKNOWLEDGE AND AGREE THAT TIME IS OF THE ESSENCE UNDER THIS AGREEMENT AND THAT YOUR RIGHTS UNDER THIS AGREEMENT ARE SUBJECT TO TERMINATION IF YOU DO NOT STRICTLY COMPLY WITH THE MINIMUM DEVELOPMENT OBLIGATIONS.
- 1.2.2 For each Business you are required to develop under this Agreement, you shall enter into our then-current form of Franchise Agreement within the time periods set forth in this Agreement. You may form newly established, separate affiliate entities in which the "Control
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the Minimum Development Obligations require the franchisee to adhere to the agreement's terms and conditions. This includes developing and opening each required business by the deadlines outlined in Exhibit A, referred to as the "Opening Deadlines." Additionally, the franchisee must have the cumulative number of businesses specified in Exhibit A open and operating within the Development Area.
Meeting these obligations is critical, as the agreement explicitly states that time is of the essence. Failure to strictly comply with the Minimum Development Obligations can lead to the termination of the franchisee's rights under the agreement. This underscores the importance of careful planning and execution in meeting the development schedule.
Furthermore, for each business the franchisee is obligated to develop, they must enter into Kitchen Solvers' current form of Franchise Agreement within the timeframes specified in the Area Development Agreement. The franchisee is permitted to establish newly formed, separate affiliate entities in which they maintain control.