Where in the Kitchen Solvers Development Agreement is 'cause' defined for termination?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development | Summary |
|---|---|---|
| g. "Cause" defined – defaults which can be cured | Agreement Section 5.2 | If you commit a default under the ADA (other than the type of default disclosed in (h) below, which defaults are non-curable), you have 15 days after you receive notice from us to cure the default identified in the notice. Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us. |
| h. "Cause" defined – non-curable defaults | Section 5.2 | We have the right to terminate the ADA effective immediately on notice to you if you commit a Material Default, including: (i) you fail to meet your Minimum Development Obligations; (ii) you commit any conduct that impairs the goodwill associated with the marks or otherwise causes harm to us or the reputation of the brand or the System; (iii) the termination of any Franchise Agreement entered into by you or any of your affiliates and us and any of our affiliates; (iv) uncured default under any such Franchise Agreement; (v) violation of the confidentiality and/or non-competition covenants; and (vi) failure to cure any other default within 15 days after notice. Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–40)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the definition of 'cause' for termination within the Development Agreement is detailed in Section 5.2. This section outlines circumstances under which Kitchen Solvers can terminate the agreement with a developer 'for cause'.
Section 5.2 distinguishes between defaults that can be cured and those that are non-curable. For curable defaults, the developer has 15 days after receiving notice from Kitchen Solvers to correct the issue. However, certain 'Material Defaults' allow Kitchen Solvers to terminate the agreement immediately upon notice. These non-curable defaults include failing to meet Minimum Development Obligations, engaging in conduct that harms the goodwill associated with Kitchen Solvers' marks or reputation, termination or uncured default of any related Franchise Agreement, violating confidentiality or non-competition covenants, and failing to cure any other default within the 15-day notice period.
This distinction between curable and non-curable defaults is important for prospective Kitchen Solvers developers. It highlights the importance of meeting development obligations and maintaining the brand's reputation. The inclusion of franchise agreement terminations as a non-curable default emphasizes the interconnectedness of the development and franchise agreements. Developers should carefully review Section 5.2 to understand their obligations and the potential consequences of failing to meet them.