Does the Kitchen Solvers Development Agreement specify any requirements for the franchisor to terminate the agreement without cause?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 5.1 | Commences on the date of the ADA is signed and ends on the last Development Deadline of the Mandatory Development Schedule. |
| b. Renewal or | Section 5.1 | The ADA is not subject to renewal. |
| extension of the term | ||
| c. Requirements for you to renew or | None | N/A |
| extend | ||
| d. Termination by you | None | N/A (subject to state law) |
| e. Termination by us without cause | None | 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. |
| f. Termination by us with cause | Section 5.2 | We can terminate you for cause. 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. |
| 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 addresses the franchisor's right to terminate the agreement both with and without cause. Specifically, Kitchen Solvers can terminate the Development Agreement without cause. However, the termination of the Development Agreement does not permit Kitchen Solvers to terminate a single-unit franchise agreement. Kitchen Solvers retains the right to terminate the Development Agreement if they have terminated a franchise agreement between the franchisee and themselves.
Kitchen Solvers can also terminate the Development Agreement with cause, as detailed in Section 5.2 of the agreement. Cause includes both curable and non-curable defaults. Curable defaults allow the franchisee a 15-day period after receiving notice to correct the issue. Non-curable defaults, which are considered Material Defaults, allow Kitchen Solvers to terminate the agreement immediately upon notice.
Material Defaults include failing to meet Minimum Development Obligations, engaging in conduct that impairs the goodwill associated with the Kitchen Solvers brand, termination or uncured default of any Franchise Agreement involving the franchisee or their affiliates, violating confidentiality or non-competition covenants, and failing to cure any other default within 15 days after notice. These provisions outline the circumstances under which Kitchen Solvers can terminate the Development Agreement, emphasizing the importance of adhering to the agreement's terms and conditions to avoid termination.