If a Kitchen Solvers franchisee defaults on a payment, is Kitchen Solvers required to make the payment on their behalf?

Based on the 2025 Franchise Disclosure Document, Kitchen Solvers is not required to make payments on behalf of a franchisee who defaults. The FDD outlines the franchisee's obligations and responsibilities in several areas, including financial matters, but it does not contain any provision that would obligate Kitchen Solvers to cover a franchisee's debts or payment defaults. The franchisee is expected to operate independently and manage their own financial obligations.

However, the FDD does state that all principal owners of a franchisee entity (corporation, partnership, etc.) must execute a form of undertaking and guarantee, making them personal guarantors of the franchisee's obligations. This means that in case of default, Kitchen Solvers can pursue the personal assets of these guarantors to recover any outstanding debts. This is a common practice in franchising to ensure that there is a responsible party who is personally invested in the success and financial stability of the franchise.

While Kitchen Solvers doesn't directly cover a franchisee's default, they do have measures in place to mitigate their financial risk, such as requiring personal guarantees from the franchisee's principal owners. Prospective franchisees should carefully review the undertaking and guarantee agreement to understand the full extent of their personal liability. They should also maintain sound financial management practices to avoid default and protect their personal assets.