Are individuals who sign the personal undertaking and guarantee for a Kitchen Solvers franchise required to abide by the non-compete covenants?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
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- 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.
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- 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.
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Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the non-compete covenants apply to individuals who sign a personal undertaking and guarantee. Specifically, the term "you" in the non-compete section includes owners and guarantors. Kitchen Solvers may also require these individuals to sign a separate non-compete agreement. This means that those who guarantee the franchisee's obligations are also restricted from engaging in competitive activities.
During the term of the Franchise Agreement, these individuals are prohibited from owning, managing, operating, or having any interest in any construction or remodeling business or any business selling similar products and services to Kitchen Solvers, unless otherwise agreed to in writing by Kitchen Solvers. This restriction applies to any business other than the authorized Kitchen Solvers franchise.
Post-termination, for a period of two years after the expiration or termination of the Franchise Agreement, or within two years of the sale of the Kitchen Solvers business, these individuals are restricted from involvement with a Competing Business. This restriction applies within the franchisee's territory. A Competitive Business is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services, as well as any business that franchises or licenses the right to open and operate such a business.
This is a fairly standard practice in franchising to protect the franchisor's confidential information, training, and goodwill. Prospective Kitchen Solvers franchisees should carefully review these non-compete provisions and consider their implications, especially if they have prior experience or future aspirations in the remodeling or related industries. It is important to understand the scope and duration of these restrictions before entering into a franchise agreement.