factual

What quality standards must a Kitchen Solvers franchisee maintain and comply with?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

ICTIONS ON SOURCES OF PRODUCTS AND SERVICES**

To help assure a uniform image and uniform quality of products and services in all KITCHEN SOLVERS® businesses, you must maintain and comply with our quality standards. Although you are not required to purchase or lease real estate from us, if you lease office space for your business or choose to have an office outside your home or a showroom, you must improve and equip the space in accordance with our then current approved design, specifications and standards. You also must use equipment (which includes hardware and software for the Technology Suite as described in Item 11), signage, fixtures, furnishings, an accounting firm, payroll and human resources services, products, supplies and advertising and sales promotion materials that meet our specifications and/or standards. You must offer for sale all programs, products and services we require in the manner and style we require.

The Franchise Agreement requires you to sell or use only those products and services that we have approved in writing. The purpose of this requirement is to ensure that all franchisees adhere to the uniformity and quality standards associated with KITCHEN SOLVERS® businesses. Upon request, we will periodically provide you with the names of approved vendors and suppliers for products, goods, supplies, fixtures, and equipment. The approved products will include "Primary Products and Services" for your Business such as new cabinet units, doors, drawer fronts, closet organizers, panels, trim and molding required for installing new cabinets or cabinet refacing and other supplies, products, and equipment. The approved suppliers for the Primary Products and Services may be Preferred Vendors as further described below.

We may modify the standards and specifications for products and services from time to time and add or delete from the list of approved vendors and suppliers. Standards may include minimum standards for delivery, performance, warranties, design, appearance and other restrictions. We may disapprove of a previously approved vendor, item, product and/or service at any time and you must discontinue offering for sale any such disapproved vendor, item, product and/or service immediately upon receipt of written notice. You may not manufacture any products for sale at or from your Business, including Primary Products, without our prior written consent. We reserve the right to limit the number of vendors and suppliers. From time to time, and at any time, we, an affiliate, or a third-party vendor or supplier may be the only approved supplier for certain products. You will pay the then-current price in effect for all purchases you make from us, our affiliate, or any third-party vendor we designate. As of the issuance date of this disclosure document, neither

we nor any affiliate is the sole supplier of any items other than the Supplies Package. We and our affiliates reserve the right to become an approved or designated supplier (including an exclusive supplier) of any product or service at any time in the future, without restriction.

You may make written request for approval of a specific product of an additional qualified vendor or supplier. Except as noted below, we may, but are not required to, grant our approval of the product if doing so will not create an inordinate number of vendors/suppliers (usually not more than 2) of the product. In addition, each vendor/supplier of a product must meet the following requirements: its product must comply with the applicable specifications and/or standards; the vendor/supplier's facilities must be adequate to meet the needs of franchisees; and the vendor/supplier and its facilities must be accessible to our periodic evaluation. We do not charge a fee for evaluating a proposed new vendor/supplier and/or a new product, but we reserve the right to do so in the future.

You must initiate the formal approval process to have a specific product of an additional vendor/supplier approved. As part of this approval process, we may request that the vendor/supplier submit samples of its specific product to us. We then conduct an evaluation of the samples to determine whether the product conforms to our specifications and/or standards. We will notify the vendor/supplier of our evaluation results by mail usually within 30 days after our receipt of the sample.

As part of the approval process for a specific product, the vendor/supplier may be required to sign an applicable supplier agreement. We may revoke our agreement at any time, including if the vendor/supplier is in violation of any of the terms of the applicable supplier agreement or if we determine in our good faith but exclusive judgment that the vendor/supplier is not meeting the standards and specifications that we have established for that product or service.

While we do not require you to purchase your computer hardware or software from a specific source, your computer hardware and software must meet our standards and specifications.

Other than our members' ownership interest in us, as of the date of this Disclosure Document no officer has an ownership interest in any approved supplier.

We and our affiliates reserve the right to receive rebates and other consideration from suppliers in connection with your purchase or lease of goods, products, and services. Without limiting this broad right, some of these payments may be based on services we provide to the supplier, other payments may be calculated on an amount based on products or services sold or leased to you. We and/or our affiliates will retain and use such payments as we deem appropriate. We consider these suppliers Preferred Vendors. We also may occasionally negotiate with Preferred Vendors so that the Preferred Vendors may offer their products or services to franchisees at favorable or discount prices, although this is not a guarantee that the prices for these products or services will be lower than other similar products on the market. For items you purchase from us, our affiliates and approved suppliers, you will pay the then-current price in effect which may be higher than the cost of similar products on the market.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–24)

What This Means (2025 FDD)

According to Kitchen Solvers's 2025 Franchise Disclosure Document, franchisees must adhere to specific quality standards to ensure uniformity across all Kitchen Solvers businesses. This includes maintaining standards for any office or showroom space, which must align with Kitchen Solvers's approved designs, specifications, and standards if the franchisee chooses to have a physical location outside of their home. Franchisees are also required to use equipment, including hardware and software, signage, fixtures, furnishings, and advertising materials that meet Kitchen Solvers's standards. Furthermore, franchisees must offer all required programs, products, and services in the manner and style dictated by Kitchen Solvers.

Kitchen Solvers requires franchisees to purchase or use only approved products and services to maintain uniformity and quality. Kitchen Solvers may periodically provide franchisees with a list of approved vendors and suppliers for essential products like new cabinet units, doors, drawer fronts, closet organizers, panels, trim, molding, and other necessary supplies and equipment. These approved suppliers may include Preferred Vendors. Kitchen Solvers retains the right to modify these standards and specifications and to add or remove vendors and suppliers from the approved list. Standards may include minimum requirements for delivery, performance, warranties, design, and appearance. Kitchen Solvers can disapprove a previously approved vendor, product, or service at any time, and franchisees must immediately stop offering such items upon written notice.

Kitchen Solvers franchisees must also maintain specific insurance coverage, including general liability, auto liability, workers' compensation, and umbrella insurance. As of the issuance date of the 2025 Disclosure Document, the minimum coverage requirements include $1,000,000 per occurrence and $2,000,000 general and products/completed operations aggregate for general liability, $1,000,000 combined single limit for commercial auto insurance, and $1,000,000 per employee/accident/policy limit for workers' compensation. Additionally, $1,000,000 per occurrence and aggregate is required for umbrella insurance. These minimum liability protection requirements may be increased annually to reflect inflation or changes in liability standards. Franchisees must provide Kitchen Solvers with evidence of insurance coverage annually, and failure to do so may result in Kitchen Solvers obtaining coverage on the franchisee's behalf, with the franchisee responsible for reimbursement of all costs incurred.

Compliance with these standards is crucial, as it is considered during franchise renewal or when applying for additional franchises. Kitchen Solvers does not guarantee the availability of independent sources for required items and does not provide additional benefits based on whether franchisees purchase through designated or approved sources. Franchisees must also use marketing and promotional materials that meet Kitchen Solvers's standards, as described in Item 11 of the FDD. The purchase of products, supplies, and marketing materials meeting these standards is estimated to represent a significant portion of the costs to establish and operate the franchise, ranging from 55% to 85% of the initial investment and 45% to 60% of ongoing operational costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.