What are the consequences for a Kitchen Solvers franchisee who breaches non-compete covenants?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Further, do you understand that the term "you" for purposes of the non-compete covenants is defined broadly in subparagraph 10.D, such that any actions in violation of the covenants by those holding any interest in the franchisee entity may result in an injunction, default and termination of the Franchise Agreement? Check one: □ Yes. □ No. |
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Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees are subject to both in-term and post-term non-compete covenants. The FDD states that the term "you" is broadly defined for purposes of the non-compete agreements, such that actions violating the covenants by anyone holding interest in the franchisee entity may result in an injunction, default, and termination of the Franchise Agreement.
During the term of the Franchise Agreement, Kitchen Solvers franchisees cannot engage in any construction or remodeling business, or any business selling similar products and services, unless Kitchen Solvers agrees in writing. After the agreement expires or terminates, franchisees are restricted from owning, managing, operating, or having any interest in a Competing Business for two years.
A Competing Business includes any kitchen or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services, as well as any business that franchises or licenses the right to open and operate such a business. This restriction applies within the franchisee's territory, within 25 miles of the territory's outer boundary, within any other franchisee's territory, or within 25 miles of another franchisee's territory. The length of the post-term non-compete period will be extended by any period during which the franchisee is in breach of the covenants or during which Kitchen Solvers seeks to enforce the agreement.