What section of the Kitchen Solvers Development Agreement discusses termination by the franchisor with cause?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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, the Development Agreement outlines the conditions under which Kitchen Solvers can terminate the agreement with cause. Section 5.2 of the Development Agreement details the circumstances for termination by Kitchen Solvers with cause. This section specifies that termination of the Development Agreement does not permit Kitchen Solvers to terminate a single-unit franchise agreement. However, Kitchen Solvers retains the right to terminate the development agreement if they have terminated a franchise agreement between the franchisee and Kitchen Solvers.
Section 5.2 further defines "cause" in two categories: defaults that can be cured and non-curable defaults. For curable defaults, the franchisee has 15 days after receiving notice from Kitchen Solvers to correct the identified default. Non-curable defaults allow Kitchen Solvers to terminate the agreement immediately upon notice if the franchisee commits a Material Default.
Material Defaults include failing to meet Minimum Development Obligations, engaging in conduct that harms the goodwill associated with Kitchen Solvers' marks or the brand's reputation, termination or uncured default of any Franchise Agreement involving the franchisee or their affiliates, violating confidentiality or non-competition covenants, and failing to cure any other default within 15 days after notice. These provisions are important for prospective franchisees to understand, as they outline the specific actions or inactions that could lead to the termination of their Development Agreement with Kitchen Solvers.