What section of the Kitchen Solvers Development Agreement defines defaults which can be cured?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------------------------------------------------------| | 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. | | i. Your obligations on | Section 5.3, Section 7.1.2, 7.
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, Section 5.2 of the Development Agreement defines defaults that can be cured. If a franchisee commits a default under the Development Agreement, excluding non-curable defaults, they have 15 days after receiving notice from Kitchen Solvers to correct the default. This section clarifies the timeframe a franchisee has to rectify a curable breach of the agreement.
However, Section 5.2 also outlines 'non-curable' defaults, which allow Kitchen Solvers to terminate the Development Agreement immediately upon notice. These include failing to meet Minimum Development Obligations, engaging in conduct that harms the brand's goodwill, termination or uncured default of any Franchise Agreement, violating confidentiality or non-competition covenants, and failing to cure any other default within 15 days after notice.
This distinction between curable and non-curable defaults is crucial for prospective Kitchen Solvers franchisees. Understanding what constitutes a non-curable default is essential, as these situations can lead to immediate termination of the Development Agreement without an opportunity to rectify the issue. Franchisees should pay close attention to these terms to avoid actions that could jeopardize their agreement with Kitchen Solvers.