Does Kitchen Solvers rely on the franchisee's representations when granting franchise rights?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor will not require you to execute the Franchise Acknowledgement/Compliance Certification that is attached to the Franchise Agreement. If you do execute the Franchisee Acknowledgment/Compliance Questionnaire, we will disregard it and not rely on it.
Section 16(I) of the Franchise Agreement requires the franchisee to consent to a waiver of exemplary and punitive damages. This Section is hereby amended with the following language:
Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are in violation of California Corporations Code section 31521.
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the California Corporations Code section 31201 and 31521.
Nothing in the Franchise Agreement prevents the franchisee from bringing a lawsuit in California for claims arising under the California Corporations Code section 31201 and 31521.
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- Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement.
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- The following provision in Section 16.B of the Franchise Agreement is hereby deleted: "You acknowledge that you are entering into this Agreement as a result of your own independent investigation of the KITCHEN SOLVERS franchise program and not as a result of any representation about us made by our shareholders, officers, directors, employees, agents, representatives, independent contractors or franchisees that is contrary to the terms identified in this Agreement or in any disclosure document, prospectus, or other similar document required or permitted to be given to you pursuant to applicable law."
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, Kitchen Solvers does not rely on a franchisee's representations in certain instances. Specifically, if a franchisee executes the Franchisee Acknowledgment/Compliance Questionnaire, Kitchen Solvers will disregard it and not rely on it. Furthermore, in Maryland and other states with similar franchise laws, any representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to act as such a release regarding liability incurred under those specific state franchise laws.
This means that while Kitchen Solvers may collect information or acknowledgments from franchisees, certain representations made by the franchisee may not be used against them, particularly concerning waivers of liability or compliance certifications. This could protect franchisees from inadvertently waiving rights or claims under applicable state franchise laws.
Additionally, the FDD states that the provision in Section 16.B of the Franchise Agreement is deleted. This section previously stated that the franchisee acknowledges entering the agreement based on their own independent investigation, not on any representations made by Kitchen Solvers that contradict the agreement or disclosure documents. The removal of this section suggests Kitchen Solvers may be taking more responsibility for the information provided to prospective franchisees.
Prospective franchisees should be aware of these provisions and understand their rights, especially concerning waivers and releases. They should also conduct their own due diligence and seek legal advice to ensure they fully understand the implications of the Franchise Agreement and any related documents.