If Kitchen Solvers designates an exclusive supplier, is a franchisee obligated to purchase from them?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Vendors and Suppliers. You must purchase from approved vendors and suppliers all new cabinet units, doors, drawer fronts, panels, trim and molding required for installing new cabinets or cabinet refacing, flooring, the components of the closet organizer systems, and other supplies, products, and equipment, as we designate, (sometimes referred to in this Agreement as "Primary Products and Services"). The Primary Products and Services are those items that we determine meet our standards and specifications of quality required to protect the valuable goodwill and uniformity symbolized by and associated with the Trademarks and Business. You acknowledge that we may designate a single source of supply for Primary Products and Services and that we, a third party, or an affiliate of ours, may be that source. Upon request, we will provide and update you with a written list of the Primary Products and Services and other approved vendors, products and services, which list will include approved vendors and suppliers for many of the items. The approved vendors and suppliers may be "Preferred Vendors," as further noted in Subparagraph 16.N of this Agreement. ALTHOUGH APPROVED BY US, WE MAKE NO WARRANTY AND EXPRESSLY DISCLAIM ALL WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, WITH RESPECT TO PRODUCTS, SERVICES, EQUIPMENT, SUPPLIES, FIXTURES, FURNISHINGS OR OTHER APPROVED PRODUCTS. We reserve the right to limit the number of vendors and suppliers and we and our affiliates reserve the right to become an approved or designated supplier (including, as stated above, an exclusive supplier) of any product, item and/or service at any time in the future without restriction. You must pay the then-current price in effect for all purchases you make from us, our affiliate, or any third party vendor we designate. You may
not manufacture any products for sale at or from the Business, including any Primary Products, without our prior written consent.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees are required to purchase specific products from approved vendors and suppliers, including a single source if designated by Kitchen Solvers. This encompasses new cabinet units, doors, drawer fronts, panels, trim and molding for cabinet installations or refacing, flooring, closet organizer system components, and other designated supplies, products, and equipment, which are termed "Primary Products and Services." These items must meet Kitchen Solvers' quality standards to protect the brand's goodwill and uniformity.
Kitchen Solvers retains the right to designate a single supplier, which could be Kitchen Solvers itself, an affiliate, or a third party. Franchisees must adhere to this designation and pay the prevailing price for all purchases from these designated sources. Franchisees are not allowed to manufacture any products for sale, including Primary Products, without Kitchen Solvers' prior written consent.
This requirement ensures uniformity and quality control across all Kitchen Solvers franchises, but it also limits the franchisee's autonomy in sourcing products. While Kitchen Solvers may provide a list of approved vendors, they disclaim all warranties regarding these products. Prospective franchisees should consider the potential impact of these purchasing restrictions on their costs and operational flexibility. It is also important to note that Kitchen Solvers reserves the right to become an exclusive supplier at any time.