Does the Kitchen Solvers non-compete agreement apply to my agents?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1.1 You and each of your owners, officers and agents will not, during the Term of this Agreement, directly, indirectly or through, on behalf of, or in conjunction with any person or legal entity:
- (a) 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 (as defined below); or
- (b) divert, or attempt to divert any present or prospective business or customer of any Business to any competitor, by direct or indirect inducement or otherwise, or do
or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System.
For purposes of this Agreement, the term "Competitive Business" shall mean 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.
- 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 the 2025 Kitchen Solvers Franchise Disclosure Document, the non-compete agreement does apply to the franchisee's agents both during the term of the agreement and for a period after the agreement expires or terminates. During the term of the agreement, the franchisee and their owners, officers, and agents are prohibited from participating in any Competitive Business, which includes kitchen and/or bathroom remodeling, cabinet refacing, or any business selling similar products and services, or franchising such businesses. This restriction prevents them from being involved as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent in a Competitive Business. They are also prohibited from diverting business to competitors or performing any act that is harmful to the goodwill associated with the Kitchen Solvers brand.
After the agreement expires or terminates, the non-compete restrictions continue for two years. During this period, the franchisee and their owners, officers, and agents are restricted from participating in a Competitive Business within specific geographic areas. These areas include the Development Area, a 25-mile radius around the Development Area, any other Kitchen Solvers franchisee's territory or area developer's development area, and a 25-mile radius around another franchisee's territory or area developer's development area. This extended restriction aims to protect Kitchen Solvers' market and other franchisees from competition from former franchisees and their agents who might leverage knowledge and experience gained during their time with Kitchen Solvers.
This non-compete agreement has significant implications for prospective Kitchen Solvers franchisees and their agents. Franchisees must ensure that their agents are aware of and willing to comply with these restrictions, both during and after the franchise term. Failure to comply could result in legal action and financial penalties for both the franchisee and the agent. The broad definition of "Competitive Business" and the extensive geographic restrictions after termination mean that franchisees and their agents need to carefully consider their future business activities to avoid violating the agreement. Franchisees should seek legal counsel to fully understand the scope and enforceability of the non-compete provisions in their specific jurisdiction, as enforceability can vary by state.