Under what conditions may Kitchen Solvers condition consent to a proposed franchise transfer?
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 franchise is transferred;
- f. you and all Personal Guarantors execute a general release in our favor;
- g. you and all Personal Guarantors agree to comply with the covenant not to compete set forth in Subparagraph 10.D of this Agreement; and
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h. in the case of an installment sale, if you or any principal owner proposes to retain a security interest or other financial interest in the Franchise Agreement or your Busin
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers may condition its consent to a proposed franchise transfer under several specific conditions. These conditions apply whether the transfer is to an individual, a corporation, a partnership, or any other entity.
First, Kitchen Solvers may require the assignee to sign an assignment and assumption agreement, thereby agreeing to assume the franchisee's obligations under the existing agreement. Alternatively, Kitchen Solvers can require the assignee to sign the then-current form of the franchise agreement, which may include materially different terms, including increased fees.
Second, Kitchen Solvers may require that all outstanding debts related to the franchisee's business, including amounts owed to Kitchen Solvers, its affiliates, or suppliers, are paid in full. The franchisee must also not be in default under any provision of the Franchise Agreement. The assignee must complete the training program required for new franchisees. A transfer fee of $5,000 must be paid by either the franchisee or the assignee. Additionally, the franchisee and all personal guarantors must execute a general release in favor of Kitchen Solvers and agree to comply with the covenant not to compete. Finally, in the case of an installment sale where the franchisee or a principal owner retains a security interest, they must guarantee the performance of the Franchise Agreement until the final close of the sale or the termination of the interest.