Does Kitchen Solvers have an option to take possession of the premises under the agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon your receipt of the written notice of termination, you may only complete previously ordered remodeling jobs or other types of projects and may not accept any new orders.
Alternatively, at our option, we may require you to assign all existing customer contracts to us and pay to us any amounts (or a pro rata portion of any amounts) paid by your customers for services you have not yet performed, as we determine.
For example, if a customer pre-paid for services and we determine that you had performed only 50% of the contracted services, we may require you to pay us 50% of the amount the customer paid to you.
You must cease your participation in any KITCHEN SOLVERS web site and our intranet system and must discontinue your use of the Trademarks or System on the internet or other online communications.
Furthermore, you must not use any of the KITCHEN SOLVERS Trademarks in a derogatory, negative, or other inappropriate manner in any media, including but not limited to print or electronic media.
You also must take such action as may be required to cancel all assumed name or equivalent registrations relating to the use of any trade name or Trademarks and notify the telephone company and listing agencies of the termination or expiration of your right to use all telephone numbers of your Business and all classified and other directory listings of your Business and authorize the transfer of such numbers and directory listings to us or as we direct, all in accordance with the Assignment of Telephone Numbers attached as Appendix D.
This agreement by you regarding the telephone numbers and listings is for the benefit of such telephone company serving you.
You agree to hold any such telephone company harmless from any and all claims against it arising out of any orders given by us to terminate, transfer or put on referral such telephone service.
Notwithstanding the foregoing, in the event of expiration or termination of this Agreement, you will remain liable for your indemnification obligations specified in Subparagraph 10.B or under common law and other obligations pursuant to any applicable lease for your Business premises or otherwise, which by their very nature are intended to survive the expiration or termination of this Agreement.
Finally, you must comply with all noncompete covenants outlined in Subparagraph 10.D.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
The 2025 Kitchen Solvers Franchise Disclosure Document outlines the obligations of the franchisee upon termination of the agreement. While it details several requirements, it does not explicitly state that Kitchen Solvers has the option to take possession of the franchisee's business premises. Instead, the FDD focuses on the franchisee's responsibilities regarding customer contracts, trademarks, and telephone listings.
Upon termination, a Kitchen Solvers franchisee is required to complete previously ordered remodeling jobs but cannot accept new orders. Kitchen Solvers, at its option, may require the franchisee to assign all existing customer contracts to them and remit any prepaid amounts for unperformed services. The franchisee must also discontinue using Kitchen Solvers' website, intranet, trademarks, and system.
Additionally, the franchisee must cancel any assumed name registrations related to the trademarks, notify the telephone company of the termination, and authorize the transfer of telephone numbers and directory listings to Kitchen Solvers. The franchisee remains liable for indemnification obligations and any lease obligations for their business premises, as well as compliance with noncompete covenants.
While the FDD details the franchisee's obligations regarding physical assets like signage and the condition of the premises during the agreement, it does not specify Kitchen Solvers' right to take possession of the premises upon termination. A prospective franchisee should seek clarification from Kitchen Solvers regarding their rights or obligations related to the business premises upon termination or expiration of the franchise agreement.