factual

If Kitchen Solvers designates a single source of supply, can that source be Kitchen Solvers itself or an affiliate?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — Contracts (FDD page 49)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers has the authority to designate a single source of supply for certain products and services. Specifically, franchisees must purchase 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 from approved vendors. These items are referred to as "Primary Products and Services."

The FDD states that Kitchen Solvers may designate a single source for these Primary Products and Services. This designated source could be Kitchen Solvers itself, a third party, or an affiliate of Kitchen Solvers. This means that Kitchen Solvers or its affiliate could potentially profit from the sale of these required supplies to franchisees.

This requirement ensures uniformity and quality control within the Kitchen Solvers system, as these Primary Products and Services are deemed critical to maintaining the brand's standards. However, it also limits the franchisee's ability to shop around for the best prices or alternative suppliers. Prospective franchisees should consider the potential costs and limitations associated with this requirement and discuss it with existing franchisees during their due diligence.

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.