Under what conditions can Kitchen Solvers terminate the Development Agreement without cause?

According to Kitchen Solvers's 2025 Franchise Disclosure Document, Kitchen Solvers's ability to terminate the Development Agreement (ADA) without cause is limited. The FDD indicates that termination of the Development Agreement does not, on its own, allow Kitchen Solvers to terminate a single-unit franchise agreement. However, Kitchen Solvers retains the right to terminate the Development Agreement if they have terminated a franchise agreement that was entered into between the franchisee and Kitchen Solvers. This means that the termination of a franchise agreement is a prerequisite for Kitchen Solvers to terminate the Development Agreement.

This provision is important for prospective Kitchen Solvers franchisees because it clarifies the circumstances under which their Development Agreement can be terminated. It highlights that simply entering into a Development Agreement does not guarantee the right to develop multiple franchise locations if the initial franchise agreement is terminated. The franchisee's rights under the Development Agreement are contingent upon maintaining a franchise agreement with Kitchen Solvers.

It is important to note that the FDD also outlines conditions under which Kitchen Solvers can terminate the Development Agreement with cause, including both curable and non-curable defaults. These include failing to meet minimum development obligations, impairing goodwill associated with Kitchen Solvers's marks, or violating confidentiality and non-competition covenants. Franchisees should carefully review these provisions to understand their obligations and avoid potential termination of their Development Agreement.