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Business Description

We are a Wisconsin limited liability company formed on December 1, 2010. Our principal business address is 301 4th Street South, La Crosse, Wisconsin 54601; telephone: 608-791-5512; website: www.kitchensolvers.com. We do business under our corporate name and Kitchen Solvers.

Prior Experience

We do not have any parents. We have one affiliate, KITCHEN WISE, LLC (“KITCHEN WISE”), that must be disclosed in this disclosure document. KITCHEN WISE is a Wisconsin limited liability company formed on November 1, 2016, with a principal business address of 301 4th Street South, La Crosse, Wisconsin 54601; telephone: (608) 797-2035. KITCHEN WISE has not, and does not, conducted the type of business offered under this Disclosure Document. KITCHEN WISE does not offer franchises of the type offered under this Disclosure Document, but does offer franchises in other lines of business. Specifically, since April 2017 KITCHEN WISE has offered franchises for home-based, mobile franchised businesses that market, design, sell, and install custom shelving and other products for kitchen and bathroom cabinets, and closets under the KITCHEN WISE trademark. As of the date of this Disclosure Document, KITCHEN WISE has not sold any franchises. We do not have any other affiliates that must be disclosed in this disclosure document. We have two predecessors: Kitchen Solvers, LLC and Kitchen Solvers, Inc. Kitchen Solvers, Inc. was formed by Gerald and Betty Baldner in 1987 and offered and sold KITCHEN SOLVERS® franchises in the United States and Canada from 1987 through 2006. Kitchen Solvers, LLC is a Wisconsin limited liability company with its principal place of business located at 301 4th Street South, La Crosse, WI 54601. On January 1, 2007, Kitchen Solvers, LLC purchased all of the assets of Kitchen Solvers, Inc., including the KITCHEN SOLVERS® trademarks, franchise agreements and related assets of the franchise system. Upon the closing of this acquisition, Kitchen Solvers, Inc. changed its name to Baldner Consulting, Inc. Kitchen Solvers, Inc. was dissolved on December 7, 2010. Kitchen Solvers, LLC granted KITCHEN SOLVERS® franchises in the United States from January 1, 2007 through November 30, 2010. On December 1, 2010, we purchased all of the assets of Kitchen Solvers, LLC, including the KITCHEN SOLVERS® trademarks, franchise agreements and related assets of the franchise system. As of the date of this Disclosure Document, we have 44 KITCHEN SOLVERS® franchises in the United States and 1 KITCHEN SOLVERS® franchises in Canada.

Business Offered

We began offering franchises in February 2011 under the KITCHEN SOLVERS® name, although our predecessors have offered franchises under the KITCHEN SOLVERS® name since 1987. We do not offer, and have not offered franchises in any other line of business. We have never operated a business similar to the business being franchised under this Disclosure Document. We grant franchises to qualified persons for the right to own and operate a retail KITCHEN SOLVERS® Business (the “Business”) within a particular geographic territory (the Territory”) and under the terms of our standard franchise agreement (the “Franchise Agreement”), a copy of which is included in this disclosure document as Exhibit B. We also are in the business of the administration of our franchise system. As of December 31, 2018, there were 44 KITCHEN SOLVERS® franchised businesses in the United States, 1 KITCHEN SOLVERS® franchise in Canada and no company owned KITCHEN SOLVERS® businesses. During the operation of your Business, you will use our Marks (as defined in Item 13), as well as our distinctive products and services, supplies, sales and business techniques, measuring and installation methods and procedures. Your Business will feature kitchen and bathroom update, beautification and remodeling options such as kitchen and bathroom design and decorating consulting; refacing, installing and replacing of kitchen and bathroom cabinets and appliances; accessorizing cabinet interiors and exteriors; installing and replacing countertops; and other kitchen and bathroom remodeling services for residential and commercial buildings. Each KITCHEN SOLVERS® business is an independently owned and operated business and you, as the franchisee, are solely responsible for your day-to-day conduct and activities. Accordingly, no KITCHEN SOLVERS® business is our agent (actual or implied).

Initial Fees

At the time you sign your Franchise Agreement, you must pay us a nonrefundable Initial Franchise Fee of $35,000. The Initial Franchise Fee is earned upon receipt and not refundable under any circumstances. The Initial Franchise Fee includes your rights to your initial Territory (as defined in Item 12). We participate in the International Franchise Association's Vet-Fran Program and offer qualified individuals honorably discharged from any branch of the U.S. Military who request at the time of signing the Franchise Agreement, a discount of up to 15% of the Initial Franchise Fee. We have identified a “Supplies Package” that you must purchase from us for use in your Business. A detailed list of the items currently included in the Supplies Package is included as Appendix C to the Franchise Agreement (which is attached to this Disclosure Document as Exhibit B). As of the issuance date of this disclosure document, the cost of the Supplies Package is $4,100.

Financing

We do not offer any direct or indirect financing to our franchisees. We are unable to estimate whether you will be able to obtain financing for any of your investment and, if you are able to obtain financing, we cannot predict the terms of the financing. We do not receive payment from any person for obtaining or placing financing. We do not guarantee your obligations to third parties.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. A. GROSS SALES INFORMATION The information below reflects a historical financial performance representation of Gross Sales earned by those 29 franchisees that operated 41 franchised businesses located in the United States during the entire period of January 1, 2018 through December 31, 2018 (the “Measurement Period”). As of December 31, 2018, there was a total of 31 franchisees operating 44 franchised businesses located in the United States. Two franchisees operating 3 franchised businesses are excluded from the data presented in this Item 19 because they were not operational for the entire Measurement Period. Single Unit Franchisees The following table presents Gross Sales information for the 20 franchisees that operated a single franchised business during the Measurement Period.