What are the consequences for a Kitchen Solvers franchisee who breaches the 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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| If you answered "No" to Questions 1-7, please explain (attached additional sheets if |
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, franchisees are bound by both in-term and post-term non-compete covenants. If a franchisee violates these covenants, Kitchen Solvers may seek an injunction to protect its interests. The term "you" in the non-compete context is broadly defined to include anyone holding interest in the franchisee entity, meaning that actions violating the covenants by these individuals can lead to an injunction, default, and termination of the Franchise Agreement.
During the term of the Franchise Agreement, franchisees cannot engage in any construction or remodeling business, or any business selling similar products and services to Kitchen Solvers, unless otherwise agreed to in writing by Kitchen Solvers. After the agreement expires or terminates, or after the sale of the Kitchen Solvers business, the franchisee is restricted from owning, managing, operating, or having any interest in a competing business for a period of two years.
The post-term non-compete restrictions apply 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 includes any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business that sells similar products and services, as well as any business that franchises or licenses the right to operate such a business. The length of the non-compete period will be extended for any time the franchisee is in breach of the covenants or during which Kitchen Solvers seeks to enforce the agreement.