After the Kitchen Solvers agreement expires, for how long is the franchisee restricted from engaging in a competing business?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
You covenant that you will not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, or within two (2) years of the sale of the KITCHEN SOLVERS Business or any interest in you, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in a Competing Business:
- a.
Inside the Territory;
- b. Within twenty –five (25) miles of the outer boundary of the Territory; or
- c. Within any other franchisee's territory; or
- d. Within twenty-five (25) miles of the outer boundary of another franchisee's territory.
For purposes of this Section 10.D, a Competing Business includes any: (a) kitchen and/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.
- You agree that the length of time in subpart (3) will be tolled for any period during which you are in breach of the covenants or any other period during which we seek to enforce this Agreement. The parties agree that each of the foregoing covenants will be construed as independent of any other covenant or provision of this Agreement.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers FDD, a franchisee is restricted from engaging in a competing business for a period of two years after the expiration or termination of the Franchise Agreement. This restriction applies regardless of the reason for termination or within two years of selling the Kitchen Solvers business or any interest in it.
The non-compete agreement prevents the franchisee from owning, managing, operating, maintaining, engaging in, or consulting with any Competing Business either directly or indirectly. This restriction is in place to protect Kitchen Solvers' confidential information, training, and goodwill that the franchisee gains access to during the term of the agreement.
The non-compete clause applies specifically within the franchisee's territory, within 25 miles of the outer boundary of the territory, within any other franchisee's territory, or within 25 miles of another franchisee's territory. A Competing Business is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services to those offered by Kitchen Solvers, including businesses that franchise or license the right to operate such businesses. The length of the non-compete period may be extended if the franchisee breaches the agreement or if Kitchen Solvers seeks to enforce it.