Must a Kitchen Solvers franchisee comply with noncompete covenants after the agreement expires or terminates?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Finally, you must comply with all noncompete covenants outlined in Subparagraph 10.D.
Non-compete Covenants.
You agree that you will receive valuable training, confidential information and goodwill that you otherwise would not receive or have access to but for the rights licensed to you under this Agreement.
You therefore agree to the following noncompetition covenants:
Unless otherwise specified, the term "you" as used in this subparagraph 10.D includes, collectively and individually, all owners, guarantors, officers, directors, members, managers, partners, as the case may be, and holders of any ownership interest in you.
We may require you to obtain from the individuals identified in the preceding sentence a signed noncompete agreement in a form satisfactory to us that contains the non-compete provisions of this subparagraph 10.D.
You covenant that during the term of this Agreement you will not, except as we otherwise agree to in writing, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in any construction or remodeling business or any other business selling products and services similar to your KITCHEN SOLVERS Business other than the one authorized by this Agreement or any other agreement between us and you.
You covenant that you will not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, or within two (2) years of the sale of the KITCHEN SOLVERS Business or any interest in you, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person or entity, own, manage, operate, maintain, engage in, consult with or have any interest in a Competing Business:
Inside the Territory;
Within twenty –five (25) miles of the outer boundary of the Territory; or
- c. Within any other franchisee's territory; or
- d. Within twenty-five (25) miles of the outer boundary of another franchisee's territory.
For purposes of this Section 10.D, a Competing Business includes 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.
You agree that the length of time in subpart (3) will be tolled for any period during which you are in breach of the covenants or any other period during which we seek to enforce this Agreement. The parties agree that each of the foregoing covenants will be construed as independent of any other covenant or provision of this Agreement.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees must adhere to non-compete covenants both during the term of the agreement and for a period of two years after the agreement's expiration or termination. This obligation extends to owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest in the Kitchen Solvers franchise. Kitchen Solvers may also require these individuals to sign a separate non-compete agreement.
The non-compete restrictions prevent franchisees from directly or indirectly owning, managing, operating, or consulting with any construction or remodeling business, or any business selling similar products and services to Kitchen Solvers, except as explicitly agreed to in writing by Kitchen Solvers. This restriction applies within the franchisee's territory, within 25 miles of the territory's outer boundary, within any other Kitchen Solvers franchisee's territory, and within 25 miles of another franchisee's territory.
A "Competing Business" is defined broadly to include any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business that sells similar products and services. It also includes businesses that franchise or license the right to open and operate such businesses. The two-year non-compete period can be extended if the franchisee breaches the covenants or if Kitchen Solvers seeks to enforce the agreement. These covenants are considered independent of other provisions within the franchise agreement.
This non-compete agreement is typical in franchising to protect the brand's confidential information, training, and goodwill. Prospective Kitchen Solvers franchisees should carefully consider the scope and duration of these restrictions, as they could significantly limit their business activities after leaving the Kitchen Solvers system. Franchisees should seek legal counsel to fully understand the implications of these covenants before signing the franchise agreement.