What is the precondition for instituting any arbitration or legal action against Kitchen Solvers, including any action to interpret or enforce the Agreement?

Based on the 2025 Kitchen Solvers Franchise Disclosure Document addendum for the state of Illinois, the Illinois Attorney General's Office has mandated that Kitchen Solvers defer collecting any initial franchise fees and/or development fees. This deferral is contingent upon Kitchen Solvers fulfilling its pre-opening obligations to the franchisee and the franchisee commencing business operations. This requirement was imposed due to Kitchen Solvers' financial condition.

This means that in Illinois, a Kitchen Solvers franchisee will not be required to pay the initial franchise or development fees until Kitchen Solvers has met all of its obligations to prepare the franchisee for opening, and the franchisee has actually started operating the business. This provides a level of financial protection for the franchisee, ensuring that fees are only paid once the franchisee is ready to begin operations and Kitchen Solvers has provided the necessary support.

It is important to note that this deferral requirement is specific to Illinois and is a result of the Illinois Attorney General's Office intervention due to Kitchen Solvers' financial situation. Franchisees in other states may not have the same protection. Prospective franchisees should carefully review the FDD and any state-specific addenda to understand the specific requirements and protections in their state.