factual

Does the Kitchen Solvers non-compete covenant prevent franchisees from consulting with a construction or remodeling business during the term of the agreement?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — Contracts (FDD page 49)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees are restricted from engaging in certain business activities during the term of the agreement. Specifically, franchisees are prohibited from owning, managing, operating, maintaining, or having any interest in any construction or remodeling business, or any business selling similar products and services to Kitchen Solvers, unless they obtain written consent from Kitchen Solvers. This restriction extends to consulting with such businesses, either directly or indirectly. This non-compete covenant applies to all owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest in the franchisee.

This in-term non-compete agreement prevents a Kitchen Solvers franchisee from diverting their time, resources, and expertise to a competing business, ensuring their full focus remains on developing and growing their Kitchen Solvers franchise. The restriction aims to protect Kitchen Solvers' market position and confidential business information, as the franchisee gains valuable training, confidential information, and goodwill through the franchise agreement.

After the termination or expiration of the franchise agreement, a Kitchen Solvers franchisee is further restricted from engaging in a Competing Business for a period of two years. This post-term non-compete extends to owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a Competing Business. The restricted area includes the franchisee's territory, within twenty-five miles of the territory's outer boundary, any other franchisee's territory, and within twenty-five miles of another franchisee's territory. A Competing Business is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services to Kitchen Solvers.

These non-compete covenants are typical in franchise agreements to protect the franchisor's business model, market share, and proprietary information. Prospective Kitchen Solvers franchisees should carefully consider the scope and duration of these restrictions, as they may limit their ability to pursue other business ventures during and after the franchise term. Franchisees should seek legal counsel to fully understand the implications of these covenants before signing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.