What is the definition of the 'Territory' granted to a Kitchen Solvers franchisee?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Rights Granted. We hereby grant to you, subject to the terms and conditions of this Agreement, the right and license to engage in and conduct a KITCHEN SOLVERS Business identified by the Trademarks that we authorize for your use hereunder (or such other marks as we may direct) for the territory consisting of the area set forth in Appendix B (the "Territory"). You are not permitted to operate the KITCHEN SOLVERS Business outside the Territory unless you secure our prior written consent, which we may grant or withhold in our sole and absolute discretion. If we grant consent permitting you to operate outside the Territory, we may revoke our consent at any time on notice to you.
You hereby accept said license and undertake the obligation to operate your Business for the duration of the Term faithfully, honestly and diligently, using the System in compliance with our standards and requirements for the System. You agree to maintain and operate your Business under your active and continuous supervision and management. You may not commence operations of your Business until you successfully complete our training program and we have approved the commencement date of operations. The license granted herein is limited to the right to operate your Business only within the Territory. You do not have the right to sub-franchise, sublicense, assign or transfer your rights under this Agreement, except as specifically provided in this Agreement.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, the Territory granted to a franchisee is defined as the area set forth in Appendix B of the Franchise Agreement. Kitchen Solvers grants the franchisee the right and license to operate a Kitchen Solvers Business within this designated Territory, using authorized Trademarks.
The franchisee is restricted from operating outside the Territory without prior written consent from Kitchen Solvers, which can be granted or revoked at their discretion. This license is specifically limited to operating within the Territory, and the franchisee does not have the right to sub-franchise, sublicense, assign, or transfer their rights, except as explicitly provided in the agreement.
Kitchen Solvers retains certain rights, including the right to establish franchises or company-owned businesses outside the Territory, and to operate businesses under different marks both within and outside the Territory. They can also sell goods and services through alternative channels, including the internet, even within the franchisee's Territory. Kitchen Solvers also reserves the right to work with "Multi-Project Customers" even if they are located in a franchisee's territory.
This means that while Kitchen Solvers grants a defined territory, they also retain significant control over expansion and alternative sales channels, which could potentially impact a franchisee's business. A prospective franchisee should carefully review Appendix B and seek clarification on the specific boundaries and potential limitations of their Territory.