factual

What is the Kitchen Solvers franchisee's obligation regarding promotion and advertising of their Business?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

rch 31st, we will provide you with an annual unaudited statement showing the receipts and disbursements of the Brand Fund for the immediately preceding calendar year within thirty (30) days after the issuance of the unaudited statement.

B. Local Marketing. You must use your best efforts to promote and advertise your Business in the Territory and participate in any local marketing and promotional programs we establish from time to time. In addition to the Brand Fund Fee, and except if you receive our prior written approval stating otherwise, commencing on the first full calendar year after you sign this Agreement, and continuing for each successive calendar year that you operate your Business, you must spend (a) 5% of your expected annual gross sales on local and digital marketing, unless we approves in writing otherwise, and (b) during the initial 3-month operating period of your business, a minimum of $3,000 per month, unless we approve otherwise in writing. We reserve the right to require you to expend your required local marketing funds over a more concentrated period (including higher expenditures following the initial opening of the Business) effective on notice to you. Your local marketing requirements for the first partial calendar year after you sign this Agreement are identified on Appendix B. You must use only such marketing materials as we furnish, approve or make available, and the materials must be used only in a manner that we prescribe. You must submit your marketing materials (print, electronic or other form of media, including the internet and social media) to us for approval. We will not unreasonably withhold approval of your marketing materials if they are factually accurate and current, dignified and in good condition and accurately depict the KITCHEN SOLVERS Trademarks. Any local advertising materials you submit to us will be deemed approved if we do not disapprove or comment within 10 business days of receipt. We may revoke approval of any previously approved marketing materials at any time, effective on notice to you. Other items like the use of our approved kiosk/mall display will count towards your local marketing requirements. Upon our request, you must provide to us copies of all invoices and receipts evidencing your local marketing

activities. We and other franchisees are restricted from marketing their KITCHEN SOLVERS Businesses in your Territory, except when such m

Source: Item 22 — Contracts (FDD page 49)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees are obligated to promote and advertise their business within their territory. After the first full calendar year of operation, Kitchen Solvers requires franchisees to spend 5% of their expected annual gross sales on local and digital marketing. However, Kitchen Solvers' written approval can alter this requirement. During the initial 3-month operating period, franchisees must spend a minimum of $3,000 per month on marketing, unless otherwise approved in writing by Kitchen Solvers. Kitchen Solvers retains the right to mandate that these local marketing funds be spent over a more concentrated period, potentially requiring higher expenditures following the business's initial opening. The local marketing requirements for the first partial calendar year are detailed in Appendix B of the agreement.

Kitchen Solvers franchisees must use only marketing materials that Kitchen Solvers furnishes, approves, or makes available, and these materials must be used in the manner prescribed by Kitchen Solvers. Franchisees need to submit all marketing materials, including print, electronic, and social media content, for approval. Kitchen Solvers will not unreasonably withhold approval if the materials are factually accurate, current, dignified, in good condition, and accurately depict the Kitchen Solvers trademarks. If Kitchen Solvers does not disapprove or comment on submitted local advertising materials within 10 business days of receipt, the materials are deemed approved. Kitchen Solvers can revoke approval of previously approved marketing materials at any time with notice to the franchisee. The use of approved kiosk/mall displays can count towards the local marketing requirements.

Kitchen Solvers franchisees must provide copies of all invoices and receipts evidencing their local marketing activities upon request. The FDD states that Kitchen Solvers and other franchisees are restricted from marketing their Kitchen Solvers businesses in a franchisee's territory, except when such marketing is part of a Brand Fund program or contained in a publication with general distribution in the territory and also in the area in which a company-owned outlet or another franchisee's territory is located. This clause aims to protect each franchisee's territory from direct marketing efforts by other franchisees or the company itself, fostering a more collaborative and less competitive environment within the franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.