Is a franchise broker paid a fee for referring prospects to the Kitchen Solvers franchisor?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchisor use the services of the franchise brokers to assist it in selling franchises, A franchise broker represents the franchisor and it paid a fee for referring prospects to the franchisor and/or selling the franchise. Do not rely on the information provided by a franchise broker about a franchise. Do you own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers does utilize franchise brokers to assist in selling franchises. The franchise broker represents Kitchen Solvers, and Kitchen Solvers pays a fee to the broker for referring potential franchisees and/or for selling the franchise. This arrangement is disclosed to potential franchisees.
This means that a portion of the franchise fee or other payments made by a new Kitchen Solvers franchisee may be used to compensate the franchise broker who facilitated the connection. It's a common practice in the franchise industry for franchisors to use brokers to expand their reach and find qualified candidates.
The FDD explicitly advises prospective franchisees not to rely solely on information provided by a franchise broker. Instead, it emphasizes the importance of conducting independent investigations by contacting current and former Kitchen Solvers franchisees to gather firsthand accounts of their experiences with the franchisor. This due diligence is crucial for making an informed decision about investing in a Kitchen Solvers franchise.