Does Kitchen Solvers guarantee a franchisee's obligations to third parties?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers does not guarantee a franchisee's obligations to third parties. However, the FDD states that all principal owners of a Kitchen Solvers franchise that is a corporation, partnership, or other entity must execute a form of undertaking and guarantee. Each such person is considered a Personal Guarantor of the franchisee's obligations as noted in the undertaking and guarantee. Any person or entity that at any time after the date of this Agreement becomes a principal owner of the franchisee must, as a condition of becoming a principal owner, execute the form of undertaking and guarantee in the form attached to this Agreement as Appendix A.

This means that while Kitchen Solvers itself does not act as a guarantor, individuals who are principal owners of a franchisee entity (like a corporation or partnership) are required to personally guarantee the franchisee's obligations. This is a common practice in franchising, as it provides an additional layer of security for the franchisor. The requirement for a personal guarantee extends to anyone who becomes a principal owner after the initial agreement date, ensuring ongoing accountability.

For a prospective Kitchen Solvers franchisee, this implies that if you operate your franchise through a business entity, you and any other principal owners will need to sign a personal guarantee. This legally binds you to the financial and contractual obligations of the franchise. It is important to carefully review the undertaking and guarantee document (Appendix A) to fully understand the scope of these obligations before signing the Franchise Agreement.