factual

What happens if a Kitchen Solvers franchisee or their personal guarantor is convicted of a felony?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

  • A. Defaults. You will be in default hereunder if we determine that you or any Personal Guarantor has breached any of the terms of this Agreement or any other agreement between you and us or our affiliates, which without limiting the generality of the foregoing, includes (i) voluntary abandonment of your Business, (ii) making any false report to us, (iii) failure to submit any required report, (iv) failure to pay when due any amounts required to be paid to us or any of our affiliates whether pursuant to this Agreement or otherwise or to any third party (including vendors and suppliers) as required by this Agreement, (v) conviction of you or any Personal Guarantor (or pleading no contest to) any felony or an offense that brings or tends to bring any of the Trademarks into disrepute or impairs or tends to impair the goodwill of any of the Trademarks, (vi) failure to abide by our standards and requirements in connection with the operation of your Business, (vii) filing of any tax liens or voluntary or involuntary bankruptcy by or against you or any Personal Guarantor, (viii) your insolvency or any Personal Guarantor's insolvency, (ix) making an assignment or entering into any similar arrangement for the disposition of assets for the benefit of creditors, (x) any unauthorized assignment or transfer of your Business, this Agreement or the stock of franchisee, (xi) any breach of the noncompete covenants or (xii) failure to meet any requirements or specifications we establish with respect to product and service quality, sales or installation procedures, conditions of materials used, or use of approved products and services.

Source: Item 22 — Contracts (FDD page 49)

What This Means (2025 FDD)

According to Kitchen Solvers's 2025 Franchise Disclosure Document, a franchisee will be in default of their agreement if they or any personal guarantor is convicted of a felony. This also applies if they plead no contest to a felony.

This default occurs if the felony conviction or 'no contest' plea brings the Kitchen Solvers trademarks into disrepute. It also applies if the conviction or plea impairs the goodwill of any of the Kitchen Solvers trademarks.

If the franchisee is in default, Kitchen Solvers has the right to terminate the franchise agreement. This means the franchisee could lose their business and the rights to operate under the Kitchen Solvers brand.

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.