To whom are the local marketing expenses paid for a Kitchen Solvers franchise?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount1 | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee1 | $60,000 | Lump sum | Upon execution of Franchise Agreement | Us |
| Pre-Opening | $2,000 to $3,000 | As Incurred | As Incurred | Third parties for travel |
| Training3 | and living expenses | |||
| Supplies Package4 | $5,900 | As incurred | Upon execution of Franchise Agreement | Us |
| Local Marketing5 | $9,000 | As Incurred | As Incurred | Third Party Suppliers |
| Rent/Leasehold | $0 to $4,500 | As incurred | As incurred | Landlord/Third Party |
| Improvements6 | (Showroom) | Suppliers |
Source: Item 7 — Estimated Initial Investment (FDD pages 16–21)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, local marketing expenses are paid to third-party suppliers. This is outlined in Item 7, which details the estimated initial investment for a Kitchen Solvers franchise. Specifically, the table within Item 7 lists 'Local Marketing' as an expenditure, noting that payments are made 'As Incurred' to 'Third Party Suppliers.' The estimated amount for these local marketing expenses is $9,000.
This means that when a Kitchen Solvers franchisee undertakes local marketing efforts, such as advertising or promotional campaigns, the payments for these services will be directly made to the companies or vendors providing those services. This could include marketing agencies, print shops, digital advertising platforms, or other suppliers involved in the franchisee's local marketing strategy.
It is important to note that Kitchen Solvers reserves the right to approve all local marketing and advertising, and may request copies of invoices and receipts to verify these activities. Additionally, franchisees are required to spend 5% of their expected annual gross sales on localized and digital marketing, with a minimum of $3,000 per month during the initial 3-month operation period, unless otherwise approved in writing by Kitchen Solvers. This ensures that franchisees are actively promoting their business within their local market, while also adhering to the brand's marketing standards and guidelines.
Prospective franchisees should factor these marketing requirements and payment structures into their initial investment and ongoing operational costs. Understanding the relationship with third-party suppliers and the franchisor's oversight in marketing activities is crucial for effective business management and brand compliance.