What section of the Kitchen Solvers Franchise Agreement requires the franchisee to consent to a waiver?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 16(I) of the Franchise Agreement requires the franchisee to consent to a waiver of exemplary and punitive damages. This Section is hereby amended with the following language:
Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are in violation of California Corporations Code section 31521.
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the California Corporations Code section 31201 and 31521.
Nothing in the Franchise Agreement prevents the franchisee from bringing a lawsuit in California for claims arising under the California Corporations Code section 31201 and 31521.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, Section 16(I) of the Franchise Agreement requires franchisees to consent to a waiver of exemplary and punitive damages. However, this section is amended for franchisees in California, as provisions requiring such a waiver are in violation of California Corporations Code section 31521. The addendum clarifies that representations requiring franchisees to waive liability do not act as a waiver of any liability incurred under the California Corporations Code sections 31201 and 31521, and that nothing in the Franchise Agreement prevents a franchisee from bringing a lawsuit in California for claims arising under these sections.
For franchisees in North Dakota, the requirement to consent to a waiver of exemplary and punitive damages is also deemed deleted from both the Disclosure Document and the Franchise Agreement. Similarly, for franchisees in Maryland, all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to act as a release of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
These addenda ensure that franchisees in California, North Dakota, and Maryland retain their rights under state laws, despite any potentially conflicting provisions in the standard Kitchen Solvers Franchise Agreement. Prospective franchisees should carefully review the addenda specific to their state to understand how the standard agreement is modified to comply with local regulations.