What happens if a Kitchen Solvers franchisee's Franchise Agreement is terminated?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
a statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
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- We will undertake the defense of any claim of infringement by third parties involving the KITCHEN SOLVERS mark, and you will cooperate with the defense in any reasonable manner prescribed by us with any direct cost of such cooperation to be borne by us.
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- Minnesota law provides franchisees with certain termination and nonrenewal rights. As of the date of this Franchise Agreement, Minn. Stat. Sec. 80C.14, Subd. 3, 4 and 5 require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the franchise agreement.
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- Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the disclosure document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. Therefore, the fourth and fifth sentences of Subparagraph 16.I are hereby deleted in their entirety.
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- Subparagraph 16.K is hereby deleted in its entirety.
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- The second sentence of Subparagraph 13.B of the Agreement is deleted in its entirety and will have no further force and effect and the following is substituted in lieu thereof:
Therefore, it is mutually agreed that in the event of a breach or threatened breach of any of the terms of this Agreement the other party will forthwith be entitled to seek an injunction restraining such breach and/or to a decree of specific performance, without showing or proving any actual damage, together with recovery of reasonable attorneys' fees and other costs incurred in obtaining said equitable relief, until such time as a final and binding determination is made by the arbitrators.
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- No Section providing for a general release as a condition of renewal or transfer will act as a release or waiver of any liability incurred under the Minnesota Franchise Act; provided that this part shall not ban the voluntary settlement of disputes.
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- Franchisor shall be entitled to the entry of temporary and permanent injunctions and orders of specific performance enforcing the provisions of this Agreement relating to: (1) Franchisee's use of the Trademarks; (2) the construction and equipping of the Franchised Business; (3) the obligations of Franchisee upon termination or expiration of this Agreement; (4) a Transfer of this Agreement, any ownership interest therein or in the lease for the Franchised Business; and (5) as necessary to prohibit any act or omission by Franchisee or its employees that would constitute a violation of any applicable law, ordinance, or regulation, or which is dishonest or misleading to Franchisor and/or Franchisor's other licensees.
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- The following provision in Section 16.B of the Franchise Agreement is hereby deleted: "You acknowledge that you are entering into this Agreement as a result of your own independent investigation of the KITCHEN SOLVERS franchise program and not as a result of any representation about us made by our shareholders, officers, directors, employees, agents, representatives, independent contractors or franchisees that is contrary to the terms identified in this Agreement or in any disclosure document, prospectus, or other similar document required or permitted to be given to you pursuant to applicable law.".
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- Except as amended herein, the Franchise Agreement will be construed and enforced in accordance with its terms.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the consequences of terminating a franchise agreement are not explicitly detailed in the provided excerpts. However, the document does provide some information regarding termination and related legal rights, particularly through addenda for specific states like Minnesota, Maryland, Virginia, California, and Wisconsin. These addenda primarily focus on modifying certain terms of the standard franchise agreement to comply with state-specific franchise laws.
For instance, the Minnesota addendum specifies that Kitchen Solvers must provide franchisees with 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal, except in certain cases. It also ensures that Minnesota franchisees retain all rights provided under Minnesota Statutes, Chapter 80C, regarding procedures, forums, and remedies. Similarly, the Wisconsin addendum requires Kitchen Solvers to provide at least 90 days' prior written notice of termination, cancellation, or substantial change in competitive circumstances, with 60 days to cure any claimed deficiency (or 10 days for nonpayment). The Virginia addendum notes that any termination clause not constituting "reasonable cause" under Virginia law may not be enforceable.
Several addenda also address legal rights and waivers. The Maryland addendum clarifies that franchisees cannot be forced to waive liabilities under the Maryland Franchise Registration and Disclosure Law and can still bring lawsuits in Maryland under this law. The California addendum states that franchisees cannot be required to waive exemplary and punitive damages, and general releases required for renewal or transfer will not apply to liabilities under the California Corporations Code. These provisions collectively emphasize the importance of franchisees understanding their legal rights and protections under state laws, especially concerning termination and related matters.
While the excerpts do not comprehensively outline all post-termination obligations, they highlight that Kitchen Solvers franchisees' rights are significantly influenced by state laws, which can modify or supersede the standard franchise agreement. A prospective franchisee should consult with a franchise attorney to fully understand the implications of termination, including any obligations or rights related to non-compete clauses, return of confidential information, and potential financial repercussions.