Is a Kitchen Solvers franchisee expected to conduct an independent investigation of costs?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
lt with your own accounting, business and legal advisors to assist you in preparing your business plan.
- C. The information presented in this Item 19 does not reflect all of the operating expenses or other costs or expenses that must be deducted from the average total sales price or gross revenue to obtain net income or profit. For example, royalty fees and marketing expenses are not included. You should conduct an independent investigation of the costs and expenses you will incur in operating your Business. Franchisees or former franchisees listed in Exhibit D to this Disclosure Document may be one source of this information.
- D. Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request.
- E. Other than the preceding financial performance representation, we do not make any financial performance representations.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–44)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, prospective franchisees are expected to conduct their own independent investigation of the costs associated with operating a Kitchen Solvers franchise. The FDD emphasizes that the financial performance information provided in Item 19 does not reflect all operating expenses. Royalty fees and marketing expenses, for example, are not included in the financial performance representation.
Kitchen Solvers advises potential franchisees to develop a business plan tailored to their specific circumstances, including capital budgets, financial statements, and projections. To aid in this process, Kitchen Solvers encourages consulting with accounting, business, and legal advisors. The FDD also suggests that prospective franchisees may find information about costs and expenses by contacting current or former Kitchen Solvers franchisees listed in Exhibit D of the Disclosure Document.
This requirement for independent investigation is standard practice in franchising. It ensures that franchisees make informed decisions based on their own due diligence and understanding of local market conditions. By conducting this investigation, a prospective Kitchen Solvers franchisee can develop a more realistic financial model for their business and better assess the potential profitability of the franchise.