Does Kitchen Solvers have the right to terminate the Development Agreement if they have terminated a franchise agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| e. Termination by us without cause | None | Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us. | | f. Termination by us with cause | Section 5.2 | We can terminate you for cause. Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us. | | g. "Cause" defined – defaults which can be cured | Agreement Section 5.2 | If you commit a default under the ADA (other than the type of default disclosed in (h) below, which defaults are non-curable), you have 15 days after you receive notice from us to cure the default identified in the notice. Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us. | | h. "Cause" defined – non-curable defaults | Section 5.2 | We have the right to terminate the ADA effective immediately on notice to you if you commit a Material Default, including: (i) you fail to meet your Minimum Development Obligations; (ii) you commit any conduct that impairs the goodwill associated with the marks or otherwise causes harm to us or the reputation of the brand or the System; (iii) the termination of any Franchise Agreement entered into by you or any of your affiliates and us and any of our affiliates; (iv) uncured default under any such Franchise Agreement; (v) violation of the confidentiality and/or non-competition covenants; and (vi) failure to cure any other default within 15 days after notice. Termination of Development Agreement does not permit us to terminate a single-unit franchise agreement. We do have the right to terminate the development agreement if we have terminated a franchise agreement entered into between you and us.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–40)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers does have the right to terminate the Development Agreement if they have terminated a franchise agreement entered into between the franchisee and Kitchen Solvers. This applies both when Kitchen Solvers terminates the agreement with or without cause.
Specifically, the FDD outlines several 'cause' scenarios where Kitchen Solvers can terminate the Development Agreement. These include both curable and non-curable defaults. A non-curable default includes the termination of any Franchise Agreement entered into by the franchisee or any of their affiliates and Kitchen Solvers or any of its affiliates, or an uncured default under any such Franchise Agreement.
This provision means that if a Kitchen Solvers franchisee's franchise agreement is terminated for any reason, Kitchen Solvers can also terminate the Development Agreement. This could have significant implications for a franchisee who has plans to develop multiple Kitchen Solvers locations, as the termination of one franchise agreement could jeopardize their entire development plan.