Does Kitchen Solvers require its consent for the creation of a security interest in the transferred property?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, if a franchisee intends to retain a security interest in the property to be transferred, they must obtain prior written consent from Kitchen Solvers. This requirement is part of the broader process for seeking Kitchen Solvers' consent for any transfer of the franchise.
Specifically, the franchisee must indicate in their application for consent to transfer whether they plan to retain a security interest in the property. Kitchen Solvers' approval is needed before such a security interest can be established, and it will only be granted under conditions acceptable to Kitchen Solvers.
This provision ensures that Kitchen Solvers maintains control over the transfer process and the financial arrangements associated with it, protecting their interests in the franchise system. It is a fairly standard practice in franchising to ensure the financial stability of new ownership and protect the brand.