Can Kitchen Solvers impose conditions on the creation of a security interest in transferred property?

Based on the 2025 Kitchen Solvers Franchise Disclosure Document, each transfer of any interest in the Franchise Agreement or the franchisee's business, as well as any renewal of the agreement, is expressly conditioned upon the franchisee's compliance with modernization and maintenance requirements at the time of the transfer or renewal. This applies regardless of the Maximum Modernization Amount initially agreed upon.

Specifically, Kitchen Solvers requires franchisees to maintain and refresh their business locations according to the franchisor's standards. This includes repairs, replacements of equipment and signage, and general upkeep. The franchisee must complete these maintenance items within a specified timeframe (30-60 days) after receiving an evaluation report from Kitchen Solvers. Immediate action is required if any condition poses a threat to customers or public health and safety.

Furthermore, Kitchen Solvers can require franchisees to modernize or replace building elements, premises, trade dress, equipment, and grounds to meet the standards of new Kitchen Solvers showrooms and offices. The maximum cumulative amount a franchisee will be required to spend on modernization during the initial term of the agreement is $30,000. This amount does not include expenditures for equipment or leasehold improvements necessary for new product offerings, nor does it cover general maintenance and refreshing of the location premises. If a franchisee fails to make required improvements or perform necessary maintenance, Kitchen Solvers has the right to effect such improvements or maintenance and then seek reimbursement from the franchisee for the costs incurred.

In summary, Kitchen Solvers does place conditions relating to modernization and maintenance on the transfer of a franchise, ensuring that the brand's standards are upheld by any new or renewing franchisee. These conditions are in place to protect the Kitchen Solvers brand and maintain uniformity across all franchise locations.