After the Kitchen Solvers franchise is terminated or expires, what is the geographic limit of the non-compete covenant?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System. | ||
| r. Non-competition covenants after the franchise is terminated or expires | Section 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 territory of any Franchised Business in operation, under lease, or under construction as of the date of termination or expiration, as applicable; or (d) within a 25 mile radius of any Franchised Business territory in operation, under lease, or under construction as of the date of termination or expiration, as applicable. 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. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–40)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, after the franchise agreement expires or is terminated, the franchisee is subject to a non-compete covenant for a period of two years. This restriction prevents the franchisee, their owners, officers, and agents from participating in any Competitive Business. The geographic scope of this restriction includes several layers of protection for Kitchen Solvers.
First, the non-compete applies anywhere within the franchisee's original Development Area. Second, it extends to a 25-mile radius around that Development Area. Third, the restriction covers any territory of an existing Kitchen Solvers Franchised Business that is in operation, under lease, or under construction at the time of termination or expiration. Finally, it includes a 25-mile radius around any such Franchised Business territory.
In addition to these local restrictions, the non-compete also prohibits involvement in any franchise system that offers or sells the right to develop, open, or operate Competitive Businesses anywhere in the United States. This prevents a former Kitchen Solvers franchisee from joining or starting a competing franchise on a national level. These non-compete covenants are in addition to the franchisee's agreements not to use any trade secrets, confidential information, or personal contacts without authorization.