What are the two components of the 'Minimum Development Obligation' for a Kitchen Solvers franchisee?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2.1 You shall comply with the terms and conditions of this Agreement and you shall comply with the following "Minimum Development Obligations": (i) develop and open each Business you are required to develop under this Agreement on or before the opening deadline set forth in Exhibit A attached hereto (the "Opening Deadlines"), and (ii) have open and in operation within the Development Area, not less than the cumulative number of Businesses identified in Exhibit A to this Agreement; (collectively, "the Minimum Development Obligation"). YOU ACKNOWLEDGE AND AGREE THAT TIME IS OF THE ESSENCE UNDER THIS AGREEMENT AND THAT YOUR RIGHTS UNDER THIS AGREEMENT ARE SUBJECT TO TERMINATION IF YOU DO NOT STRICTLY COMPLY WITH THE MINIMUM DEVELOPMENT OBLIGATIONS.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the Minimum Development Obligations consist of two components. First, the franchisee must develop and open each required Business by the opening deadline outlined in Exhibit A of the agreement. Second, the franchisee must have open and operating within the Development Area no less than the cumulative number of Businesses identified in Exhibit A.
These obligations are critical, as the FDD states that a franchisee's rights under the agreement are subject to termination if they do not strictly comply with the Minimum Development Obligations. This highlights the importance of carefully reviewing Exhibit A and understanding the development schedule and required number of open businesses.
For a prospective Kitchen Solvers franchisee, this means a serious commitment to expansion within the agreed-upon timeframe. Failing to meet these obligations could lead to the termination of the franchise agreement, resulting in a loss of investment and the right to operate a Kitchen Solvers franchise.