Does the Kitchen Solvers Personal Guarantee include the arbitration provisions of the Franchise Agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Except as qualified below in Subparagraph 13.A.3 or 13.B, any dispute involving us, you, or any Personal Guarantor (including the directors, officers, heirs, beneficiaries or other similar parties claiming an interest through any of these entities), arising under, out of, or in any way connected with or related to this Agreement, the relationship between the parties, statutory claims arising out of this Agreement or the franchise relationship, or your Business, must be submitted to binding arbitration under the authority of the Federal Arbitration Act and must be arbitrated in accordance with the rules and procedures and under the auspices of the American Arbitration Association. The arbitration will take place in where our then-current headquarters are located, which is currently La Crosse, Wisconsin, or at such other place as may be mutually agreeable to the parties. Any arbitration must be resolved on an individual basis and not joined as part of a class action or the claims of other parties. The arbitrator must follow the law and not disregard the terms of this Agreement. The arbitration will be conducted by one (1) arbitrator who must have at least 5 years' experience in franchising or in franchise law.
The decision of the arbitrator will be final and binding on all parties to the dispute; however, the arbitrator may not under any circumstances: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; or (iii) make any award that extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance set by us. Judgment upon the award may be entered in any court having jurisdiction thereof.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, disputes involving the Personal Guarantor are subject to binding arbitration. Specifically, any dispute involving Kitchen Solvers, the franchisee, or any Personal Guarantor, including their heirs or beneficiaries, that arises from or relates to the Franchise Agreement, the relationship between the parties, statutory claims, or the franchisee's business, must be submitted to binding arbitration. This arbitration is governed by the Federal Arbitration Act and must follow the rules and procedures of the American Arbitration Association.
The arbitration proceedings will be held in La Crosse, Wisconsin, where Kitchen Solvers' headquarters are located, unless both parties agree to another location. The FDD specifies that any arbitration must be resolved on an individual basis, meaning class actions or joined claims are not allowed. The arbitrator is required to follow the law and adhere to the terms of the Franchise Agreement.
The arbitrator's decision is final and binding. However, the arbitrator is limited in their powers; they cannot stay the termination of the Franchise Agreement, award punitive or exemplary damages, or modify any lawful term of the agreement or any reasonable business performance standard set by Kitchen Solvers. The FDD states that a judgment upon the arbitrator's award can be entered in any court with jurisdiction.