For Kitchen Solvers, what is the deadline for executing the Franchise Agreement for each business developed?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 Development Fee. You shall pay to us a "Development Fee" in the amount designated in Exhibit A immediately upon execution of this Agreement. The Development Fee is paid to us in consideration of the rights we grant you pursuant to this Agreement. Accordingly, the Development Fee is deemed fully earned by us upon execution of this Agreement and is nonrefundable, even if you fail to develop one or more of the Businesses.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document, the Development Fee is due immediately upon the execution of the agreement. Specifically, the Development Fee compensates Kitchen Solvers for granting the franchisee the rights outlined in the agreement.
This means that a prospective Kitchen Solvers franchisee must be prepared to pay the Development Fee at the time they sign the agreement. The agreement becomes effective immediately upon execution, obligating both Kitchen Solvers and the franchisee to its terms.
It is important to note that the Development Fee is deemed fully earned by Kitchen Solvers upon execution of the agreement and is nonrefundable, even if the franchisee fails to develop one or more of the Businesses. This highlights the importance of careful due diligence and planning before entering into the agreement, as the fee is nonrefundable even if the franchisee is ultimately unsuccessful in opening all planned locations.