Can Kitchen Solvers terminate a single-unit franchise agreement if the Development Agreement is terminated?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
u should read these provisions in the Area Development Agreement attached to this FDD.**
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 5.1 | Commences on the date of the ADA is signed and ends on the last Development Deadline of the Mandatory Development Schedule. |
| b. Renewal or | Section 5.1 | The ADA is not subject to renewal. |
| extension of the term | ||
| c. Requirements for you to renew or | None | N/A |
| extend | ||
| d. Termination by you | None | N/A (subject to state law) |
| 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. |
| Provision | Section in Development | Summary |
| -------------------------------------------------------------------- | --------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| 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, 7.3 | Comply with covenants and all post-term obligations of |
| termination/nonrenewal | the Development Agreement. | |
| j. Assignment of | Section 6.1 | No restriction on our right to assign. |
| contract by us | ||
| k. "Transfer" by you – definition | Section 6.2 | Includes transfer of the ADA or your ownership change. |
| l. Our approval of transfer by you | Section 6.2 | You are not permitted to assign or transfer the ADA. |
| m. Conditions for our approval of | Not applicable | You have no right to transfer or assign the ADA. |
| transfer | ||
| n. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–40)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, the termination of the Development Agreement does not automatically permit Kitchen Solvers to terminate a single-unit franchise agreement. However, Kitchen Solvers retains the right to terminate the Development Agreement if they have already terminated a franchise agreement between the franchisee and themselves. This provision is consistent across defaults that can be cured and non-curable defaults under the Development Agreement.
This means that a Kitchen Solvers franchisee's individual franchise agreement operates somewhat independently from the Development Agreement. The franchisor cannot use termination of the Development Agreement as a shortcut to end a franchise agreement. However, if Kitchen Solvers terminates a franchise agreement for cause (as outlined in the franchise agreement itself), they then have grounds to terminate the Development Agreement as well.
This clause protects franchisees from losing their franchise simply due to a breach of the Development Agreement, providing a degree of security. However, it also clarifies that Kitchen Solvers can sever all ties with a franchisee if the franchise agreement is violated, ensuring they can remove problematic franchisees from the system. Prospective franchisees should carefully review the conditions under which Kitchen Solvers can terminate the franchise agreement itself, as that can trigger termination of the Development Agreement.