For how long after the expiration or termination of the Kitchen Solvers agreement are franchisees restricted from participating in a competitive business?
Kitchen_Solvers Franchise · 2025 FDDAnswer 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, franchisees face a two-year restriction on competitive business activities following the expiration or termination of their franchise agreement. This non-compete clause prevents former franchisees, their owners, officers, and agents from engaging in any Competitive Business, either directly or indirectly, within specific geographic areas.
The restricted areas include the franchisee's original Development Area, a 25-mile radius around it, any other Kitchen Solvers franchisee's territory, or a 25-mile radius around another franchisee's territory. This means a franchisee cannot operate or be involved in a similar kitchen or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services within these defined zones. The term 'Competitive Business' also extends to businesses that franchise or license the right to open and operate similar businesses.
This non-compete agreement is a standard practice in franchising to protect the brand's market share and confidential information. However, the enforceability of such clauses can vary by state. For example, the FDD includes addenda for California, noting that the enforceability of the non-compete provision may be limited under California law. Prospective franchisees should be aware of these restrictions and how they might impact their future business opportunities after leaving the Kitchen Solvers system. It is advisable to seek legal counsel to understand the specific implications and enforceability of the non-compete agreement in their state.