factual

If the reason for termination, cancellation, or substantial change in competitive circumstances for a Kitchen Solvers franchisee in Wisconsin is nonpayment, how many days do they have to cure the deficiency?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

This Addendum pertains to franchisees in the State of Wisconsin and is for the purpose of complying with Wisconsin statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended to include the following:

  1. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, Subparagraph 11.B of the Agreement pertaining to "Termination by Us" is extended as follows:

We will provide you at least 90 days' prior written notice of termination, cancellation, or substantial change in competitive circumstances. The notice will state all the reasons for termination, cancellation, or substantial change in competitive circumstances and will provide that you have 60 days in which to rectify any claimed deficiency. If the deficiency is rectified within 60 days, the notice will be void. If the reason for termination, cancellation, or substantial change in competitive circumstances is nonpayment of sums due under the franchise, you will be entitled to written notice of such default, and will have not less than 10 days in which to remedy such default from the date of delivery or posting of such notice.

Source: Item 23 — Receipts (FDD pages 49–190)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, Wisconsin franchisees facing termination, cancellation, or a substantial change in competitive circumstances due to nonpayment have a specific timeframe to remedy the situation. If the termination is due to nonpayment of sums owed under the franchise agreement, the franchisee is entitled to written notice of the default and will have no less than 10 days to correct the deficiency from the date the notice is delivered or posted.

This 10-day cure period for nonpayment is shorter than the standard cure period provided for other types of deficiencies. Generally, Kitchen Solvers provides Wisconsin franchisees at least 90 days' prior written notice of termination, cancellation, or substantial change in competitive circumstances. This notice includes the reasons for the action and allows the franchisee 60 days to rectify any claimed deficiency. However, the nonpayment clause supersedes this general rule.

This distinction is important for prospective Kitchen Solvers franchisees in Wisconsin to understand. While they typically have a longer period to address other issues, nonpayment demands swift action. Franchisees should ensure they have systems in place to manage payments and address any potential shortfalls promptly to avoid termination of their franchise agreement. The Wisconsin Fair Dealership Law supersedes any inconsistent provisions in the franchise agreement, reinforcing these protections.

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.