If a Kitchen Solvers franchisee sells their business, how long does the non-compete agreement last?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- a.
Inside the Territory;
- b. 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.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, if a franchisee sells their Kitchen Solvers business, a non-compete agreement applies for two years following the sale. This agreement restricts the franchisee from engaging in any competing business within specific geographic boundaries.
The non-compete extends to the franchisee's territory, within 25 miles of the territory's outer boundary, within any other Kitchen Solvers franchisee's territory, or within 25 miles of another franchisee's territory. A competing business is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services, including businesses that franchise or license the right to operate such businesses.
This non-compete clause ensures that a former Kitchen Solvers franchisee cannot immediately leverage the knowledge and experience gained from the franchise to directly compete against the brand or other franchisees in the system. The agreement aims to protect Kitchen Solvers' market share and the investments made by other franchisees. The duration of two years and the specified geographic limitations are fairly standard in the franchise industry for non-compete agreements.