Does Kitchen Solvers require a proposed transfer agreement to be submitted with the application for consent to transfer?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Consent to Transfer. We will not unreasonably withhold our consent to transfer, provided that the proposed assignee is, in our reasonable judgment, qualified to provide active supervision over the operation of your Business, the proposed assignee possess sufficient net worth and sources of capital to meet our standards for your Business, and the conditions defined in Subparagraph 14.C are satisfied. Application for our consent to a transfer and tender of the right of first refusal provided for in Subparagraph 14.E must be made by submission of our form of application for
consent to transfer, which must be accompanied by the documents (including a copy of the proposed purchase or other transfer agreement) or other information required therein. 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. Any agreement used in connection with a transfer will be subject to our prior written approval, which approval will not be withheld unreasonably. You immediately must notify us of any proposed transfer hereunder and must submit promptly to us the application for consent to transfer. Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void and will give us the right to either terminate this Agreement or to collect from you a transfer fee equal to two times the transfer fee provided for in this Agreement.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, a copy of the proposed purchase or other transfer agreement must accompany the application for consent to transfer. The application itself must be made using Kitchen Solvers' form. This requirement ensures that Kitchen Solvers has all necessary information to evaluate the proposed transfer.
Kitchen Solvers needs to assess whether the proposed assignee is qualified to actively supervise the business and possesses sufficient net worth and capital. The application must also indicate if the current franchisee plans to retain a security interest in the transferred property, which requires Kitchen Solvers' prior written consent under acceptable conditions.
Any transfer agreement used must receive Kitchen Solvers' prior written approval, which will not be unreasonably withheld. Franchisees must promptly notify Kitchen Solvers of any proposed transfer and submit the application for consent. Attempting to transfer without prior written consent or not complying with the agreement terms renders the transfer void. This gives Kitchen Solvers the right to terminate the agreement or collect a transfer fee equal to two times the standard transfer fee.