For Kitchen Solvers, what is the role of a Personal Guarantor?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
evise the Kitchen Solvers Business System Online Manual and their standards, procedures, techniques and systems periodically to meet changing conditions of operation in the best interest of all businesses operating under the Trademarks.
- E. Confidential Information. You and your Personal Guarantors (as described in Subparagraph 16.F) must not, during the term of this Agreement or thereafter, communicate, divulge or use for the benefit of any other person or entity any Confidential Information, except to such employees as must have access to it to operate your Business. For purposes of this Agreement, "Confidential Information" means proprietary information, knowledge and know-how, including processes, materials, methods, procedures, suggested pricing, specifications, techniques and other data concerning the methods of operation of a KITCHEN SOLVERS Business. Any and all Confidential Information must not be used for any purpose other than conducting your Business in the Territory. We may require that you obtain nondisclosure and confidentiality agreements in a form satisfactory to us from any persons owning a minority interest in your Business and from other key employees. You must provide copies of the executed agreements to us upon request.
- F. Customer Information. You must provide us with up-to-date customer information and copies of customer invoices in the form we prescribe. You must submit this information through
our designated software system, or other online communications as we prescribe. We have the right to contact the customers to ascertain your quality of work and the level of customer satisfaction.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, a Personal Guarantor plays a crucial role in ensuring the franchisee's obligations are met. Specifically, if the franchisee is a corporation, partnership, or other entity, all principal owners must execute a form of undertaking and guarantee, thereby becoming Personal Guarantors. This means they are personally responsible for the franchisee's obligations under the franchise agreement.
This requirement has significant implications for prospective Kitchen Solvers franchisees. If you plan to operate your franchise through a business entity, you and all other principal owners will need to sign a personal guarantee. This exposes your personal assets to the risk of being used to cover any debts or liabilities the franchise business incurs. It is a common practice in franchising to require personal guarantees, as it provides the franchisor with added security and assurance that the franchisee is fully committed to the business.
Furthermore, any person who becomes a principal owner of the Kitchen Solvers franchise after the initial agreement must also execute this guarantee as a condition of ownership. This ensures that all principal owners are equally responsible for the franchise's obligations throughout the term of the agreement. The FDD also states that Personal Guarantors must not, during or after the term of the Agreement, communicate, divulge, or use confidential information for the benefit of any other person or entity.