What options does Kitchen Solvers have regarding existing customer contracts upon termination?

According to Kitchen Solvers's 2025 Franchise Disclosure Document, upon written notice of termination, a franchisee can only complete previously ordered remodeling jobs and cannot accept new orders. However, Kitchen Solvers has the option to require the franchisee to assign all existing customer contracts to them.

If Kitchen Solvers exercises this option, the franchisee must pay Kitchen Solvers any amounts (or a pro rata portion of any amounts) that customers have already paid for services not yet performed. For example, if a customer prepaid for services and the franchisee has only performed 50% of the contracted services, Kitchen Solvers may require the franchisee to pay them 50% of the amount the customer paid.

This clause protects Kitchen Solvers by ensuring that customers' projects are completed even after a franchise agreement terminates. It also allows Kitchen Solvers to receive the financial benefit from work not yet performed by the franchisee. For a prospective franchisee, this means that upon termination, they may not only lose future revenue but may also have to remit a portion of past payments to Kitchen Solvers, impacting their financial standing at the end of the franchise agreement.