Under the Kitchen Solvers Personal Guarantee, what consideration is given for the execution of the Franchise Agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
All principal owners of a franchisee that is a corporation, partnership or other entity must execute the form of undertaking and guarantee at the end of this Agreement. Each such person is considered a Personal Guarantor of the franchisee's obligations as noted in the undertaking and guarantee. Any person or entity that at any time after the date of this Agreement becomes a principal owner of the franchisee must, as a condition of becoming a principal owner,
execute the form of undertaking and guarantee in the form attached to this Agreement as Appendix A.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, all principal owners of a franchisee that is a corporation, partnership, or other entity must execute a form of undertaking and guarantee. This guarantee is attached as Appendix A to the Franchise Agreement. Any person or entity that becomes a principal owner after the agreement date must also execute this guarantee as a condition of becoming a principal owner.
In effect, the personal guarantee ensures that the obligations of the Kitchen Solvers franchisee are also backed by the personal assets of the principal owners. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee.
The FDD excerpt does not specify the exact legal consideration provided by Kitchen Solvers in exchange for the personal guarantee. Typically, the consideration would be the granting of the franchise itself, contingent upon the guarantee being provided. A prospective franchisee should review Appendix A and consult with a legal professional to fully understand the implications and obligations of the personal guarantee before signing the Franchise Agreement.