What is the geographic scope of the non-compete covenant for a former Kitchen Solvers franchisee?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (FA) | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | FA: Paragraph 4 | 10 years |
| b. | Renewal or extension of the term | FA: Paragraph 4 | If you satisfy renewal requirements, you have the option to renew for up to two (2) additional 10-year terms. |
| c. | Requirements for franchisee to renew or extend | FA: Paragraph 4 | You must be in compliance with your Franchise Agreement, be current with all monetary obligations, attend any necessary training and have continuously operated the Business. You also must give us notice, maintain or obtain suitable premises for the Business (including modernization of sample doors, showcase display and all materials displaying the Marks), sign a release and sign a then current Franchise Agreement, which may have materially different terms and conditions from your original agreement. |
| d. | Termination by franchisee | None | Not applicable (subject to state law) |
| 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, if a franchise agreement is terminated or expires, the franchisee is subject to a non-compete covenant. This covenant restricts involvement in any competing business for a period of two years. The geographic scope of this restriction includes the franchisee's territory, or within 25 miles of the outer boundary of their territory.
Furthermore, the non-compete extends to 25 miles from the outer boundary of another Kitchen Solvers franchisee’s territory. This means a former franchisee cannot operate a competing business near existing Kitchen Solvers locations. The non-compete also applies to the Development Agreement, restricting participation in a Competitive Business within the Development Area or within a twenty-five (25) mile radius of the Development Area.
In addition to the local restrictions, the non-compete also prohibits participation in any franchise system that offers or sells the right to develop, open, or operate Competitive Businesses anywhere in the United States for two years after the agreement expires or is terminated. This prevents a former Kitchen Solvers franchisee from joining or starting a competing franchise on a national level. These covenants apply to the franchisee, their owners, officers, and agents.
Prospective franchisees should carefully consider these non-compete restrictions, as they could significantly limit their business options after leaving the Kitchen Solvers system. It is important to understand the full extent of these limitations and how they might impact future opportunities.