Does the Kitchen Solvers non-compete agreement apply to guarantors of the franchise?
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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- 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;
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the non-compete agreement does apply to guarantors of the franchise. The agreement specifies that the term "you" includes all owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest in the franchisee. Kitchen Solvers may also require these individuals to sign a separate non-compete agreement. This ensures that all parties with a significant stake in the franchise are bound by the non-compete covenants.
The non-compete covenants state that during the term of the Franchise Agreement, the franchisee and related parties cannot engage 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 both directly and indirectly, preventing involvement through other entities or persons.
Post-term, for a period of two years after the expiration or termination of the agreement, or within two years of the sale of the Kitchen Solvers business, the franchisee and related parties are prohibited from owning, managing, operating, maintaining, engaging in, or consulting with a Competing Business. This restriction applies within the territory, within twenty-five miles of the outer boundary of the territory, within any other franchisee's territory, or within twenty-five miles of the outer boundary of another franchisee's territory. A Competing Business includes any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business that sells similar products and services, as well as businesses that franchise or license the right to open and operate such businesses.
This comprehensive non-compete agreement is designed to protect Kitchen Solvers' interests by preventing franchisees and related parties from using the knowledge, training, and goodwill gained during the franchise term to compete with Kitchen Solvers, both during and after the agreement. Prospective franchisees and their guarantors should carefully review these non-compete terms to understand the full scope of their obligations.