Does the Kitchen Solvers non-compete agreement apply to my owners and officers?
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 Kitchen Solvers' 2025 Franchise Disclosure Document, the non-compete agreement does indeed apply to the franchisee, their owners, officers, and agents. During the term of the agreement, these parties 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. This restriction prevents them from being involved as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent in a competing business. They are also barred from diverting or attempting to divert any business or customers to a competitor or from performing any act that could harm the goodwill associated with the Kitchen Solvers brand.
Post-termination, the non-compete extends for two years, restricting the franchisee, their owners, officers, and agents from engaging in a Competitive Business within specific geographic areas. These areas include the Development Area, a 25-mile radius around it, 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 broad geographic scope aims to protect Kitchen Solvers' market share and brand integrity by preventing former franchisees and their associates from directly competing in areas where the brand has an established presence.
For a prospective Kitchen Solvers franchisee, this means that not only are they personally bound by the non-compete, but so are their owners, officers, and agents. This has significant implications for who can be involved in the franchise and what other business activities they can pursue, both during the franchise term and for two years after. Franchisees need to ensure that all individuals associated with their business understand and are willing to comply with these restrictions. The definition of "Competitive Business" is broad, so franchisees and their associates must be careful to avoid any activities that could be construed as a violation of the non-compete agreement.