What is the 'Maximum Modernization Amount' defined as in the Kitchen Solvers agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
h or safety, you must affect the items of maintenance immediately.
- D. Relocation. If your location is outside of your home, you may not relocate your location without our prior written consent, which we will not unreasonably withhold.
- E. Modernization or Replacement. If you establish a showroom or your office is outside of your home, from time to time as we require, you must effect items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your showroom and office to conform to the standards for similarly situated new KITCHEN SOLVERS showroom and office. The maximum cumulative amount (the "Maximum Modernization Amount") that you will be required to spend during the initial term of this Agreement is $30,000.
The Maximum Modernization Amount does not include any required expenditures for equipment or leasehold improvements necessary to prepare new product offerings. Furthermore, you must perform general, continued maintenance and refreshing of the location premises whenever necessary as set forth in subparagraph 5.C and at a cost not included in the Maximum Modernization Amount. Each and every transfer of any interest in this Agreement or your business governed by Paragraph 11 or renewal covered by Paragraph 4 is expressly conditioned upon your compliance with these requirements at the time of transfer or renewal without regard to the Maximum Modernization Amount.
You acknowledge and agree that the requirements of this subparagraph 5.E are both reasonable an
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the "Maximum Modernization Amount" is the maximum cumulative amount a franchisee will be required to spend during the initial term of the Franchise Agreement for modernization and/or replacement of the building, premises, trade dress, equipment, and grounds to conform to Kitchen Solvers' standards for similarly situated new showrooms and offices. This amount is capped at $30,000.
However, the $30,000 Maximum Modernization Amount does not include expenditures for equipment or leasehold improvements necessary to prepare for new product offerings. Additionally, franchisees are responsible for general, continued maintenance and refreshing of the location premises, the costs of which are not included in the Maximum Modernization Amount.
It's important to note that compliance with these modernization requirements is a condition for any transfer of interest in the Franchise Agreement or business, as well as for any renewal of the agreement, regardless of whether the franchisee has already reached the Maximum Modernization Amount. If a franchisee fails to make required improvements or perform necessary maintenance, Kitchen Solvers has the right to make such improvements or perform such maintenance and charge the franchisee for the costs incurred.