If Kitchen Solvers terminates the development agreement, does that permit them to terminate a single-unit franchise agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
u should read these provisions in the Area Development Agreement attached to this FDD.**
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 5.1 | Commences on the date of the ADA is signed and ends on the last Development Deadline of the Mandatory Development Schedule. |
| b. Renewal or | Section 5.1 | The ADA is not subject to renewal. |
| extension of the term | ||
| c. Requirements for you to renew or | None | N/A |
| extend | ||
| d. Termination by you | None | N/A (subject to state law) |
| e. Termination by us without cause | None | Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us. |
| f. Termination by us with cause | Section 5.2 | We can terminate you for cause. Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us. |
| Provision | Section in Development | Summary |
| -------------------------------------------------------------------- | --------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–40)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the termination of a Development Agreement by Kitchen Solvers does not automatically permit them to terminate a single-unit franchise agreement. However, Kitchen Solvers retains the right to terminate the Development Agreement if they have already terminated a franchise agreement between the franchisee and Kitchen Solvers. This means that the status of the franchise agreement takes precedence; if a franchise agreement is terminated, Kitchen Solvers can then terminate the Development Agreement.
This provision protects franchisees who have an existing, active franchise agreement from losing their franchise simply because Kitchen Solvers terminates the Development Agreement. However, it also gives Kitchen Solvers the ability to end the Development Agreement if the franchisee's performance or actions lead to the termination of the franchise agreement itself. This ensures that Kitchen Solvers can sever ties completely with a franchisee who is not meeting the brand's standards or is in violation of their agreements.
For a prospective Kitchen Solvers franchisee, this means that maintaining compliance with the franchise agreement is crucial. If the franchise agreement remains in good standing, the franchisee is protected from termination due to issues solely related to the Development Agreement. However, any breach of the franchise agreement could lead to its termination, which would then allow Kitchen Solvers to terminate the Development Agreement as well. Therefore, understanding and adhering to the terms of both agreements is essential for a franchisee's long-term success and stability within the Kitchen Solvers system.