Is a Kitchen Solvers franchisee allowed to operate a competing business during the term of the franchise agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (FA) | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | FA: Paragraph 10D | No direct or indirect involvement by you or your personal guarantors in the operation of any construction or remodeling business or any other business selling products and services similar to those sold by your Business. |
| r. | Non-competition covenants after the franchise is terminated or expires | FA: Paragraph 10D | No competing business for 2 years within the Territory, or within 25 miles of the outer boundary of your Territory or 25 miles of the outer boundary of another franchisee’s territory. |
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, franchisees are restricted from involvement in competing businesses during the franchise term. Specifically, Paragraph 10D of the Franchise Agreement prohibits direct or indirect involvement by the franchisee or their personal guarantors in any construction or remodeling business, or any business selling similar products and services to Kitchen Solvers. This restriction applies throughout the entire 10-year franchise term.
This non-compete clause ensures that franchisees focus solely on developing their Kitchen Solvers business and do not divert resources or expertise to competing ventures. It protects Kitchen Solvers's market share and prevents franchisees from using the franchisor's confidential information or business model to benefit a rival company. The non-compete extends not only to the franchisee but also to their personal guarantors, broadening the scope of the restriction.
After the franchise agreement terminates or expires, a different non-compete clause takes effect. This post-term covenant prevents the franchisee from engaging in a competing business for two years within their former territory, or within 25 miles of their territory's outer boundary, or within 25 miles of another franchisee's territory. This protects Kitchen Solvers from former franchisees immediately setting up competing businesses and leveraging their established customer base and knowledge of the Kitchen Solvers system.
For a prospective Kitchen Solvers franchisee, these non-compete clauses are significant. They mean a full commitment to the Kitchen Solvers business during the franchise term and a restricted ability to operate a similar business for two years after the agreement ends. Franchisees should carefully consider these limitations and ensure they are comfortable with the restrictions before investing in a Kitchen Solvers franchise.