conditional

Under what condition must a Kitchen Solvers franchisee pay a broker referral fee?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) In addition to the transfer fee described in the Item 6 table, you also must pay to us the total broker referral fee if the transferee is a person or entity that was referred to us by a broker organization that requires us to pay a referral fee payment.

Source: Item 6 — OTHER FEES (FDD pages 13–16)

What This Means (2025 FDD)

According to Kitchen Solvers's 2025 Franchise Disclosure Document, a franchisee must pay a broker referral fee if the person or entity to whom they are transferring their franchise was referred to Kitchen Solvers by a broker organization that requires Kitchen Solvers to pay a referral fee. This fee is in addition to the standard transfer fee outlined in Item 6.

This means that if a franchisee decides to sell their Kitchen Solvers franchise and the buyer was introduced to Kitchen Solvers through a broker, and that broker has a prior agreement with Kitchen Solvers for referral fees, the franchisee selling the business is responsible for covering that broker's fee. This is an important consideration for any franchisee looking to sell their business, as it could impact the net proceeds from the sale.

It is important for prospective Kitchen Solvers franchisees to understand the implications of this policy. Before agreeing to a transfer, the franchisee should clarify with Kitchen Solvers whether the buyer was referred by a broker and if so, what the amount of the referral fee will be. This will allow the franchisee to accurately assess the financial impact of the transfer and negotiate accordingly.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.