Does Kitchen Solvers reserve the right to limit the number of vendors and suppliers?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–24)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers retains the right to limit the number of vendors and suppliers that franchisees can use. This means that while franchisees can request approval for additional vendors or suppliers, Kitchen Solvers ultimately decides whether to grant that approval. They typically will not approve a new vendor if it would create more than two vendors for a particular product.
Kitchen Solvers may modify the standards and specifications for products and services and can add or delete from the list of approved vendors and suppliers. They can also disapprove a previously approved vendor, product, or service with written notice, at which point the franchisee must immediately stop offering the disapproved item for sale. In some instances, Kitchen Solvers, an affiliate, or a third-party vendor may be the only approved supplier for certain products.
This policy ensures uniformity and quality across all Kitchen Solvers businesses. While franchisees are not required to purchase computer hardware or software from a specific source, it must meet Kitchen Solvers' standards and specifications. The FDD indicates that franchisees can request approval for additional vendors or suppliers, but Kitchen Solvers is not required to grant approval if it creates an inordinate number of vendors/suppliers (usually not more than 2) for the product. The vendor's product must comply with specifications, the vendor's facilities must be adequate, and the vendor must allow periodic evaluations.
For a prospective franchisee, this means a significant portion of their costs, estimated at 55% to 85% for establishing the business and 45% to 60% for ongoing operations, will be spent on products, supplies, and marketing materials that meet Kitchen Solvers' standards. Kitchen Solvers also derives revenue from franchisee purchases, with $181,830.90, or 8% of their total revenue, coming from required purchases and leases by franchisees during the fiscal year ending December 31, 2024. This system allows Kitchen Solvers to maintain quality control and potentially benefit financially from franchisee purchases through markups, commissions, and rebates from suppliers.