What transfer fee does Kitchen Solvers charge if a franchisee transfers without consent?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
wise not in compliance with the terms of this Agreement will be void and will give us the right to either terminate this Agreement or to collect from you a transfer fee equal to two times the transfer fee provided for in this Agreement.
- C. Conditions of Transfer. Whether the transfer be to an individual, a corporation, a partnership or to any other entity, the following provisions apply:
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- We may condition our consent to any proposed transfer upon the following:
- a. the assignee (and, if corporation or partnership, its owners), at our option, has signed and agreed to be bound by:
- i. an assignment and assumption agreement satisfactory to us, whereby the assignee assumes your obligations under this Agreement; or
- ii. the form of franchise agreement and such ancillary agreements as we then customarily use in the grant of franchises, which form agreement may contain materially different terms than the terms of this Agreement including increased fees;
- b. all of your ascertained or liquidated debts in connection with your Business, including all amounts owed to us or any of our affiliates or your suppliers have been paid in full;
- c. you are not in default under any provision of this Agreement;
- d. the assignee has completed the training program required of new franchisees;
- e. you or the assignee has paid $5,000 as a transfer fee. If the transferee is a person or entity that was referred to us as a potential franchisee by a broker organization under terms that require us to pay a referral fee to the broker organization if the transferee signs a Franchise Agreement with us, you agree that you will pay us the total broker referral fee we are required to pay before the franc
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Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, while the document outlines conditions for transfer, including a transfer fee of $5,000, it does not specify any additional or different fee applicable if a franchisee transfers without obtaining Kitchen Solvers' consent. The standard transfer conditions and fee would likely apply even in the absence of consent, but the franchisor would also have grounds to terminate the franchise agreement due to the unauthorized transfer.
Therefore, a franchisee considering a transfer should carefully review the franchise agreement and consult with Kitchen Solvers to understand the implications of transferring without consent. This is crucial to avoid potential breaches of contract and associated penalties. The franchisee should also seek legal counsel to fully understand their rights and obligations.
Prospective Kitchen Solvers franchisees should inquire with the franchisor about the specific consequences of transferring the franchise without prior consent. Understanding the full ramifications, beyond just the standard transfer fee, is essential for making informed business decisions and ensuring compliance with the franchise agreement.