Does the Kitchen Solvers agreement define 'Development Area' in the context of the non-compete clause?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
or bathroom remodeling business, cabinet refacing business and/or any other business that sells products and services similar to the products and services sold at your KITCHEN SOLVERS Business; and/or (b) business that franchises or licenses the right to open and operate a business of the type identified in (a) of this provision.
- 7.1.2 During the two (2) year period after expiration or termination of this Agreement, you and your owners, officers and agents will not directly or indirectly participate as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent or serve in any other capacity in any Competitive Business that is located: (a) anywhere in the Development Area; (b) within a twenty-five (25) mile radius of the Development Area; (c) within any other KITCHEN SOLVERS® franchisee's territory or within any area developer's development area; or (d) within twenty-five (25) mile radius of another franchisee's territory or another area developer's development area. During the two (2) year period after expiration or termination of this Agreement, you and your owners, officers and agents will not directly or indirectly participate as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent or serve in any other capacity in any franchise system that is offering or selling the right to develop, open or operate Competitive Businesses anywhere in the United States. The covenants not to compete are in addition to and not in lieu of your express agreements set forth above to not use any trade secrets, confidential information or personal contacts except as authorized by us.
- 7.1.3 You acknowledge and agree that the restricted periods set forth in Section 7.1 (inclusive of all subparts) shall be tolled during any time in which you are in violation of your obligations.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the non-compete clause refers to the 'Development Area.' Specifically, during the term of the agreement, the franchisee is prohibited from engaging in any Competitive Business. After the agreement expires or terminates, this restriction extends for two years within the Development Area, within a 25-mile radius of the Development Area, within any other Kitchen Solvers franchisee's territory or area developer's development area, or within a 25-mile radius of another franchisee's territory or another area developer's development area.
The Kitchen Solvers agreement also addresses the company's right to operate in Non-Public Access Areas and with Multi-Project Customers, even within the franchisee's Development Area. 'Non-Public Access Area' is defined as military bases, government institutions, and other areas not accessible to the general public. 'Multi-Project Customer' refers to a customer contracting for 50 or more projects, such as apartment building owners, home builders, or hotel chains. Kitchen Solvers retains the right to provide services to these customers directly or through other franchisees without compensating the franchisee whose Development Area includes these customers.
For a prospective Kitchen Solvers franchisee, this means the 'Development Area' is a crucial factor in determining the scope of both their exclusive rights and the restrictions they face. While the franchisee typically benefits from an exclusive territory, Kitchen Solvers retains the right to operate in specific locations and serve specific types of customers within that territory. The franchisee should seek clarification from Kitchen Solvers regarding the specific boundaries and characteristics of their Development Area to fully understand their market and competitive landscape. It is also important to understand how the Development Area interacts with the non-compete obligations both during and after the franchise agreement.