factual

What is the geographic radius around a Kitchen Solvers Development Area where a franchisee is prohibited from engaging in a competitive business after termination?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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' 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in any competitive business within a specific geographic area after the termination or expiration of their franchise agreement. This non-compete obligation extends for a period of two years.

Specifically, the franchisee and their owners, officers, and agents are prohibited from participating in a Competitive Business within the Development Area itself. Additionally, they are restricted within a 25-mile radius of the Development Area. The restrictions also apply within any other Kitchen Solvers franchisee's territory or area developer's development area, as well as within a 25-mile radius of another franchisee's territory or another area developer's development area.

This means that after leaving the Kitchen Solvers system, a former franchisee cannot operate or be involved in a similar business that could draw customers away from existing Kitchen Solvers franchisees or area developers. This restriction aims to protect the brand and the investments of other franchisees within the Kitchen Solvers system. Franchisees should carefully consider these post-termination restrictions, as they could limit their business opportunities after the franchise agreement ends.

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.