What paragraphs in the Kitchen Solvers Franchise Agreement address the franchisee's advertising obligations?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
rch 31st, we will provide you with an annual unaudited statement showing the receipts and disbursements of the Brand Fund for the immediately preceding calendar year within thirty (30) days after the issuance of the unaudited statement.
B. Local Marketing. You must use your best efforts to promote and advertise your Business in the Territory and participate in any local marketing and promotional programs we establish from time to time. In addition to the Brand Fund Fee, and except if you receive our prior written approval stating otherwise, commencing on the first full calendar year after you sign this Agreement, and continuing for each successive calendar year that you operate your Business, you must spend (a) 5% of your expected annual gross sales on local and digital marketing, unless we approves in writing otherwise, and (b) during the initial 3-month operating period of your business, a minimum of $3,000 per month, unless we approve otherwise in writing. We reserve the right to require you to expend your required local marketing funds over a more concentrated period (including higher expenditures following the initial opening of the Business) effective on notice to you. Your local marketing requirements for the first partial calendar year after you sign this Agreement are identified on Appendix B. You must use only such marketing materials as we furnish, approve or make available, and the materials must be used only in a manner that we prescribe. You must submit your marketing materials (print, electronic or other form of media, including the internet and social media) to us for approval. We will not unreasonably withhold approval of your marketing materials if they are factually accurate and current, dignified and in good condition and accurately depict the KITCHEN SOLVERS Trademarks. Any local advertising materials you submit to us will be deemed approved if we do not disapprove or comment within 10 business days of receipt. We may revoke approval of any previously approved marketing materials at any time, effective on notice to you. Other items like the use of our approved kiosk/mall display will count towards your local marketing requirements. Upon our request, you must provide to us copies of all invoices and receipts evidencing your local marketing
activities. We and other franchisees are restricted from marketing their KITCHEN SOLVERS Businesses in your Territory, except when such marketing is part of a Brand Fund program under Subparagraph 9.A or contained in a publication with general distribution in the Territory and also in the area in which the company-owned outlet or another franchisee's territory is located.
10. FRANCHISEE'S OTHER OBLIGATIONS
You agree to comply with the following terms and conditions:
- A. Payment of Debts. You agree to pay promptly when due: (i) all payments, obligations, assessments and taxes due and payable to us, vendors, suppliers, lessors, federal, state or local governments, or creditors in connection with your Business or products or services used in connection with your Business, (ii) all liens and encumbrances of every kind and character created or placed upon or against any of said property; and (iii) all accounts and other indebtedness of every kind incurred by you in the conduct of your Business. In the event you should default in making any payment, we will be authorized, but not required, to pay the same on your behalf and you covenant promptly to reimburse us on demand for any such payment.
- B. Indemnification; Insurance. You hereby waive all claims against us (and any affiliates, officers, directors, agents and employees) for damages to property, death, or injuries to persons arising directly or indirectly out of the management or operation of your Business.
Source: Item 9 — Franchisee's Obligations (FDD pages 24–25)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Item 22, Paragraph B, titled "Local Marketing" and Item 11 address the franchisee's advertising obligations. Item 22, Paragraph B states that franchisees must use their best efforts to promote and advertise their business in their territory and participate in any local marketing and promotional programs that Kitchen Solvers establishes. Unless Kitchen Solvers approves otherwise in writing, franchisees must spend 5% of their expected annual gross sales on local and digital marketing, commencing on the first full calendar year after signing the Franchise Agreement and continuing for each successive calendar year that they operate their business. During the initial 3-month operating period, franchisees must spend a minimum of $3,000 per month, unless otherwise approved in writing by Kitchen Solvers.
Item 22, Paragraph B also states that Kitchen Solvers reserves the right to require franchisees to expend their required local marketing funds over a more concentrated period, including higher expenditures following the initial opening of the business, effective upon notice. Franchisees must use only marketing materials that Kitchen Solvers furnishes, approves, or makes available, and the materials must be used only in a manner that Kitchen Solvers prescribes. Franchisees must submit their marketing materials (print, electronic, or other form of media, including the internet and social media) to Kitchen Solvers for approval. Kitchen Solvers will not unreasonably withhold approval of marketing materials if they are factually accurate and current, dignified and in good condition, and accurately depict the Kitchen Solvers Trademarks. Any local advertising materials submitted will be deemed approved if Kitchen Solvers does not disapprove or comment within 10 business days of receipt. Kitchen Solvers may revoke approval of any previously approved marketing materials at any time, effective upon notice. The use of approved kiosk/mall displays will count towards local marketing requirements. Upon request, franchisees must provide copies of all invoices and receipts evidencing their local marketing activities.
Item 11 also addresses marketing programs, stating that franchisees must spend a minimum of $3,000 per month during the initial 3-month opening period of their business on approved local marketing and advertising, commencing on the first full calendar year after signing the Franchise Agreement and continuing for each successive calendar year that they operate their Kitchen Solvers business. Franchisees are required to spend at least 5% of expected annual gross sales on local advertising each month during the term, commencing with the fourth month of operations. Local marketing requirements for the first partial calendar year after signing the Franchise Agreement will be identified on Appendix B to the Franchise Agreement. Franchisees must submit their marketing materials to Kitchen Solvers for approval, and approval will not be unreasonably withheld if the materials are factually accurate, current, dignified, and accurately depict the Kitchen Solvers Marks. Marketing materials will be deemed approved if Kitchen Solvers does not disapprove or comment within 10 business days of receipt. Kitchen Solvers may revoke approval of any previously approved marketing materials at any time, effective on notice. The use of approved kiosk/mall displays will count towards local marketing requirements. Upon request, franchisees must provide copies of all invoices and receipts evidencing their local marketing activities. In addition to local marketing obligations, franchisees must pay a Brand Fund Fee equal to 1% of their monthly Gross Sales, and Kitchen Solvers may increase the maximum annual contribution upon 30 days' prior written notice.