factual

What constitutes a 'Competitive Business' according to the Kitchen Solvers agreement?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

For purposes of this Agreement, the term "Competitive Business" shall mean 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.

Source: Item 23 — Receipts (FDD pages 49–190)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, a "Competitive Business" is defined specifically for the purposes of the franchise agreement's non-compete clauses. During the term of the agreement, a franchisee cannot participate in any capacity in a business that is either (a) a kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services to those offered by a Kitchen Solvers franchise, or (b) a business that franchises or licenses the right to open and operate a business of the type described in (a).

This definition is important because it restricts the franchisee's ability to engage in related business activities, even outside of their Kitchen Solvers franchise. The restriction applies not only to direct competition but also to businesses that enable others to compete with Kitchen Solvers. This broad definition aims to protect Kitchen Solvers' market position and the integrity of its franchise system.

After the franchise agreement expires or terminates, the restrictions on competitive businesses continue for two years. During this period, the franchisee is prohibited from participating in a Competitive Business 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. This extended non-compete clause is designed to prevent former franchisees from using the knowledge and experience gained while operating a Kitchen Solvers franchise to directly compete with the brand in a defined geographic area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.