Are Kitchen Solvers franchisees prohibited from being a distributor for a competitive business after the agreement terminates?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 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 other KITCHEN SOLVERS® franchisee's territory or within any area developer's development area; or (d) within twenty-five (25) mile radius of another franchisee's territory or another area developer's development area.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, franchisees are restricted from engaging in competitive business activities after the termination or expiration of the franchise agreement. Specifically, for a period of two years following the end of the agreement, franchisees (including their owners, officers, and agents) cannot participate in any capacity (owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent) within a Competitive Business.
This non-compete obligation applies within specific geographic boundaries. These boundaries include the franchisee's Development Area, any area within a 25-mile radius of the Development Area, any other Kitchen Solvers franchisee's territory or area developer's development area, and any area within a 25-mile radius of another franchisee's territory or another area developer's development area. A "Competitive Business" is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services to those offered by Kitchen Solvers, as well as any business that franchises or licenses the right to operate such a business.
This clause is designed to protect Kitchen Solvers' market share and brand reputation by preventing former franchisees from using the knowledge and experience gained during their franchise term to directly compete with the system. Prospective franchisees should carefully consider the implications of this two-year non-compete period and the geographic restrictions it imposes on their future business endeavors after leaving the Kitchen Solvers system. It is a fairly standard practice in franchising to include a post-term non-compete clause, but the specific terms (duration, geographic scope, and covered activities) can vary significantly between franchise systems.