Does Kitchen Solvers require the assignee to agree to be bound by an assignment and assumption agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Alternatively, at our option, we may require you to assign all existing customer contracts to us and pay to us any amounts (or a pro rata portion of any amounts) paid by your customers for services you have not yet performed, as we determine.
For example, if a customer pre-paid for services and we determine that you had performed only 50% of the contracted services, we may require you to pay us 50% of the amount the customer paid to you.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document, the document does not explicitly state that an assignee must agree to be bound by an assignment and assumption agreement. However, in the event of termination, Kitchen Solvers has the option to require the franchisee to assign all existing customer contracts to them.
If Kitchen Solvers exercises this option, the franchisee must pay Kitchen Solvers any amounts (or a pro rata portion of any amounts) paid by customers for services not yet performed. For example, if a customer pre-paid for services and Kitchen Solvers determines that the franchisee had performed only 50% of the contracted services, Kitchen Solvers may require the franchisee to pay them 50% of the amount the customer paid.
While the FDD does not specify an assignment and assumption agreement for assignees, it is important for a prospective franchisee to discuss the conditions under which Kitchen Solvers would require assignment of customer contracts and what specific obligations the franchisee would have in such a scenario. This will help clarify the financial responsibilities and potential liabilities upon termination.