What net worth must a Kitchen Solvers franchisee have to be assigned the lease?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Appendix E to the Franchise Agreement
Collateral Assignment of Lease
COLLATERAL ASSIGNMENT OF LEASE
THIS COLLATERAL ASSIGNMENT OF LEASE is made as of the last date below written by and among ("Tenant"), KS LA CROSSE INVESTMENTS, LLC ("Franchisor"), and ("Landlord").
WHEREAS, Tenant is the tenant under a certain lease (or sublease), dated (the "Lease"), wherein Landlord leased to Tenant certain premises at (the "Premises"); and WHEREAS, Tenant and have, or will, enter into a Franchise Agreement (the "Franchise Agreement"), whereby will grant to Tenant the right to open and operate a KITCHEN SOLVERS® franchised business under Franchisor's system at the Premises; and WHEREAS, as a condition to entering into the Franchise Agreement, has required that Tenant assign its right, and interest in the Lease, with the right to reassign (as provided therein), as security for Tenant's obligations and Franchisor's rights under the Franchise Agreement; and WHEREAS, in order to induce to enter into the Franchise Agreement, Tenant has agreed to assign its right, and interest in the Lease, with the right to reassign (as provided therein), as security for Tenant's obligations and Franchisor's rights under the Franchise Agreement.
NOW THEREFORE, in consideration for the foregoing premises and the mutual promises contained herein and in the Franchise Agreement, and in order to secure Tenant's obligations and Franchisor'srights under the Franchise Agreement, Tenant does hereby collaterally assign, transfer and set over unto Franchisor, with the right to reassign (as provided herein), all of its right, and interest in and to the Lease and in and to the Premises; it being nevertheless expressly understood and agreed that this assignment is made and is consented to the Landlord contingent upon the following terms, covenants, limitations and conditions: Tenant's Right to Possession.
Tenant shall retain right to possession of the 1.
Premises in accordance with the terms and conditions of the Lease until the occurrence of an Assignment Event (as defined in paragraph 2 of this Agreement).
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document, a Collateral Assignment of Lease is part of the franchise agreement. As a condition of entering into the Franchise Agreement, Kitchen Solvers requires the franchisee to assign their rights and interest in the lease as security for the franchisee's obligations and Kitchen Solver's rights under the Franchise Agreement.
The franchisee (referred to as "Tenant" in the Collateral Assignment of Lease) retains the right to possess the premises according to the lease terms until an "Assignment Event" occurs. The specific conditions constituting an "Assignment Event" are detailed in paragraph 2 of the Collateral Assignment of Lease agreement.
The FDD does not specify a minimum net worth requirement for the franchisee to be assigned the lease. To fully understand the financial requirements and conditions related to the lease assignment, a prospective Kitchen Solvers franchisee should carefully review the full Franchise Agreement, including Appendix E (Collateral Assignment of Lease), and consult with the franchisor directly.