Are there defaults which can be cured under the Kitchen Solvers Development Agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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, certain defaults under the Area Development Agreement (ADA) can be cured. If a franchisee commits a default under the ADA, excluding non-curable defaults, they have 15 days after receiving notice from Kitchen Solvers to correct the default. This provides an opportunity for franchisees to rectify issues and maintain their agreement.
However, certain defaults are deemed non-curable, leading to immediate termination upon notice. These 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, violating confidentiality or non-competition covenants, and failing to cure any other default within the initial 15-day notice period.
The distinction between curable and non-curable defaults is crucial for prospective Kitchen Solvers area developers. While some breaches of the ADA allow for a grace period to remedy the situation, others can result in immediate termination, highlighting the importance of adhering to the agreement's terms and conditions. Franchisees should carefully review Section 5.2 of the Development Agreement to fully understand their obligations and the potential consequences of non-compliance.