Does the Kitchen Solvers Franchise Agreement allow for reservation of claims against non-settling parties?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Reservation of Claims Against Non-Settling Parties. Kitchen Solvers and Franchisee expressly reserve their right and claims against any non-settling persons, firms, corporations, or other entities for whatever portion or percentage their damages are found to be attributable to the wrongful conduct of said non-settling parties.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the Franchise Agreement includes a provision for the reservation of claims against non-settling parties. Specifically, both Kitchen Solvers and the franchisee retain the right to pursue claims against any individuals, firms, corporations, or other entities that are not part of the settlement agreement. This reservation applies to the portion or percentage of damages found to be attributable to the wrongful conduct of these non-settling parties. This clause ensures that Kitchen Solvers and its franchisees are not prevented from seeking compensation from other responsible parties, even after settling disputes between themselves.
This provision is beneficial for a prospective Kitchen Solvers franchisee because it protects their right to seek damages from third parties who may contribute to losses or damages related to the franchise. For example, if a supplier's actions cause financial harm to the franchisee's business, this clause allows the franchisee to pursue a claim against the supplier, even if the franchisee has settled other disputes with Kitchen Solvers. This can provide an additional avenue for recovering losses and ensuring that all responsible parties are held accountable.
However, it is important to note that the ability to pursue claims against non-settling parties is subject to legal determinations regarding the attribution of damages. The franchisee would need to demonstrate that the non-settling party's actions directly contributed to the damages incurred and establish the extent of their responsibility. Prospective franchisees should consult with legal counsel to fully understand the implications of this clause and the steps necessary to successfully pursue claims against non-settling parties.