Does the individual designated to supervise and manage the Kitchen Solvers business need to have an ownership interest in the franchisee entity?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are an individual, you must directly supervise and manage the Business in the Territory. If you are a corporation, partnership or other business entity, you must designate in writing to us an individual who will directly supervise and manage the operation of the Business in the Territory. In either instance, the individual who will directly supervise and manage the operation of the Business in the Territory must complete our training program. Such individual need not have an ownership interest in the franchisee entity; however, he or she may be required to sign a written agreement maintaining confidentiality of proprietary information described in Item 14 and abiding by the non-compete covenants described in Item 17.
Each individual who owns an interest in the franchisee entity must sign the personal undertaking and guarantee attached to the Franchise Agreement. These people agree to discharge all obligations of the franchisee under the Franchise Agreement and are bound by all its terms and conditions, including maintaining confidentiality of proprietary information described in Item 14 and abiding by the non-compete covenants described in Item 17.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 35–36)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the individual designated to supervise and manage the Kitchen Solvers business does not necessarily need to have an ownership interest in the franchisee entity. If the franchisee is an individual, they must directly supervise and manage the business. However, if the franchisee is a corporation, partnership, or other business entity, they must designate an individual to supervise and manage the business.
The designated individual, regardless of ownership, must complete the Kitchen Solvers training program. This ensures that the person in charge of day-to-day operations is well-versed in the Kitchen Solvers system.
Even if the designated supervisor does not have an ownership stake, they may be required to sign agreements to maintain the confidentiality of proprietary information and abide by non-compete covenants. All individuals who own an interest in the franchisee entity must sign a personal undertaking and guarantee, agreeing to fulfill the franchisee's obligations and adhering to confidentiality and non-compete terms.