What is Kitchen Solvers' policy on withholding consent to a transfer?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Consent to Transfer. We will not unreasonably withhold our consent to transfer, provided that the proposed assignee is, in our reasonable judgment, qualified to provide active supervision over the operation of your Business, the proposed assignee possess sufficient net worth and sources of capital to meet our standards for your Business, and the conditions defined in Subparagraph 14.C are satisfied. Application for our consent to a transfer and tender of the right of first refusal provided for in Subparagraph 14.E must be made by submission of our form of application for
consent to transfer, which must be accompanied by the documents (including a copy of the proposed purchase or other transfer agreement) or other information required therein. The application must indicate whether you propose to retain a security interest in the property to be transferred. No such security interest will be created without our prior written consent and except upon conditions acceptable to us. Any agreement used in connection with a transfer will be subject to our prior written approval, which approval will not be withheld unreasonably. You immediately must notify us of any proposed transfer hereunder and must submit promptly to us the application for consent to transfer. Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void and will give us the right to either terminate this Agreement or to collect from you a transfer fee equal to two times the transfer fee provided for in this Agreement.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers will not unreasonably withhold consent to a transfer of the franchise. However, this is conditional on several factors. The proposed assignee must be, in Kitchen Solvers' reasonable judgment, qualified to actively supervise the business operations. Additionally, the assignee needs to possess sufficient net worth and capital sources that meet Kitchen Solvers' standards for the business. Subparagraph 14.C of the franchise agreement must also be satisfied.
To initiate the transfer process, a Kitchen Solvers franchisee must submit the franchisor's form of application for consent to transfer. This application must include all required documents and information, including a copy of the proposed purchase or transfer agreement. The application must also state whether the franchisee intends to retain a security interest in the transferred property. Kitchen Solvers' prior written consent is required for any such security interest, and it will only be permitted under conditions acceptable to them. Any agreement used for the transfer is subject to Kitchen Solvers' prior written approval, which, again, will not be unreasonably withheld.
The Kitchen Solvers franchisee must immediately notify Kitchen Solvers of any proposed transfer and promptly submit the application for consent to transfer. Attempting to transfer the franchise without Kitchen Solvers' prior written consent or not complying with the terms of the agreement will render the transfer void. In such cases, Kitchen Solvers has the right to either terminate the franchise agreement or collect from the franchisee a transfer fee equal to two times the transfer fee outlined in the agreement.