Does the estimated initial investment for a Kitchen Solvers Franchised Business under the Development Agreement include costs for opening additional Franchised Businesses beyond the initial one?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is Made |
|---|---|---|---|---|
| Development Fee2 | $105,000 (for two Territories) to $200,000 (for five Territories) | Lump Sum | Upon execution of Development Agreement | Franchisor |
| Initial Investment to Open Initial Franchised Business3 | $41,857 to $76,807 | See Chart A and B of this Item 7. | ||
| Total Estimated Initial Investment | $146,857 to $276,807 | This is the total estimated initial investment to enter into a Development Agreement for a minimum of two and a maximum of five or more Franchised Businesses, as well as the costs to open and commence operating your initial Franchised Business for the first three months (as described more fully in Chart A of this Item 7). See Note 3. |
Explanatory Notes to Chart B:
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- All fees and payments are non-refundable, unless otherwise stated or permitted by us. This Chart details the estimated initial investment associated with executing a Development Agreement for between two and five or more Franchised Businesses, as well as the initial investment to open your first Franchised Business under your Development Schedule.
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- The Development Fee is described in greater detail in Item 5 of this Disclosure Document. The low range of the Development Fee is for the right to open two Franchised Businesses and the high range is for the right to open five or more Franchised Businesses.
- This figure represents the total estimated initial investment required to open the initial Franchised Business under the Development Agreement. You will be required to enter into our then-current form of franchise agreement for the initial Franchised Business you open under your Development Agreement. The range includes all the items outlined in Chart 7.A.
Source: Item 7 — Estimated Initial Investment (FDD pages 16–21)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, the estimated initial investment for a Development Agreement covers the costs to open the initial franchised business, but it does not include costs for opening any additional Kitchen Solvers franchises under the Development Agreement. The initial investment ranges from $146,857 to $276,807. This includes the Development Fee, which ranges from $105,000 to $200,000, depending on whether the agreement is for two to five or more territories. It also includes the initial investment to open the first franchised business, estimated to be between $41,857 and $76,807.
This means that prospective Kitchen Solvers franchisees entering into a Development Agreement should budget separately for the costs associated with opening each additional location beyond the first. These costs may differ from those disclosed for the initial franchise and could potentially be higher. Chart A of Item 7 outlines the costs associated with opening a single Kitchen Solvers franchise.
It is important for potential Kitchen Solvers developers to carefully consider the financial implications of opening multiple locations and to conduct thorough due diligence to estimate the costs for each additional franchise. This includes factoring in potential variations in costs and ensuring sufficient capital is available to support the development schedule outlined in the agreement.