Under what conditions can Kitchen Solvers terminate the Area Development Agreement without cause?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 5.1 | Commences on the date of the ADA is signed and ends on the last Development Deadline of the Mandatory Development Schedule. |
| b. Renewal or | Section 5.1 | The ADA is not subject to renewal. |
| extension of the term | ||
| c. Requirements for you to renew or | None | N/A |
| extend | ||
| d. Termination by you | None | N/A (subject to state law) |
| e. Termination by us without cause | None | 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. |
| f. Termination by us with cause | Section 5.2 | We can terminate you for cause. 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' 2025 Franchise Disclosure Document, Kitchen Solvers can terminate the Area Development Agreement (ADA) without cause. However, the FDD states that the termination of the Development Agreement does not permit Kitchen Solvers to terminate a single-unit franchise agreement. Kitchen Solvers retains the right to terminate the development agreement if they have terminated a franchise agreement entered into between the franchisee and Kitchen Solvers.
This means that while Kitchen Solvers has the option to end the Area Development Agreement prematurely, this action does not automatically lead to the termination of any existing single-unit franchise agreements the franchisee may have in place. The franchisee's operation of existing Kitchen Solvers locations remains protected under their separate franchise agreements.
However, if Kitchen Solvers terminates a franchise agreement with the franchisee, they then have the right to terminate the development agreement. This clause links the fate of the ADA to the performance and adherence to the terms of the individual franchise agreements, adding another layer of consideration for prospective Kitchen Solvers franchisees. It is important to note that the FDD does not elaborate on the specific reasons or conditions under which a single-unit franchise agreement might be terminated, leading to the subsequent termination of the ADA.