Does the Kitchen Solvers Development Agreement outline any specific procedures for curing defaults?
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 Development Agreement specifies procedures for curing certain defaults. If a franchisee commits a default under the Development Agreement, excluding non-curable defaults, Kitchen Solvers will provide a 15-day notice to cure the default. Failure to cure within this timeframe may result in termination of the Development Agreement.
However, certain defaults are deemed non-curable, leading to immediate termination upon notice. These Material Defaults include failing to meet Minimum Development Obligations, engaging in conduct that impairs the goodwill associated with Kitchen Solvers' marks or harms the brand's reputation, termination or uncured default of any Franchise Agreement, violating confidentiality or non-competition covenants, and failing to cure any other default within the standard 15-day notice period.
It is important to note that the termination of the Development Agreement does not automatically permit Kitchen Solvers to terminate a single-unit franchise agreement. Kitchen Solvers retains the right to terminate the Development Agreement if a franchise agreement between the franchisee and Kitchen Solvers has been terminated. This distinction is crucial for franchisees to understand, as the consequences of defaulting on the Development Agreement differ from those of defaulting on a single-unit franchise agreement.