What are the non-competition covenants for a Kitchen Solvers franchisee after the franchise is terminated or expires?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (FA) | Summary | |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | FA: Paragraph 10D | No competing business for 2 years within the Territory, or within 25 miles of the outer boundary of your Territory or 25 miles of the outer boundary of another franchisee’s territory. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 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 territory of any Franchised Business in operation, under lease, or under construction as of the date of termination or expiration, as applicable; or (d) within a 25 mile radius of any Franchised Business territory in operation, under lease, or under construction as of the date of termination or expiration, as applicable. 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 franchise system that is offering or selling the right to develop, open or operate Competitive Businesses anywhere in the United States. The covenants not to compete are in addition to and not in lieu of your express agreements set forth a |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 36–40)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, both the Franchise Agreement and the Development Agreement contain post-term non-compete clauses. If a franchisee's agreement is terminated or expires, they are subject to certain restrictions.
For the Franchise Agreement, the franchisee is restricted from engaging in any competing business for two years. This restriction applies within the franchisee's territory, or within 25 miles of the outer boundary of their territory, or within 25 miles of another Kitchen Solvers franchisee's territory.
For the Development Agreement, the franchisee (including their owners, officers, and agents) is restricted for two years after termination or expiration. They cannot participate in any capacity (owner, director, partner, officer, franchisee, employee, etc.) in any Competitive Business located within the Development Area, within a 25-mile radius of the Development Area, within any territory of an existing Franchised Business, or within a 25-mile radius of any Franchised Business territory. Additionally, they cannot participate in any franchise system offering or selling the right to develop or operate Competitive Businesses anywhere in the United States.
These non-compete agreements are designed to protect Kitchen Solvers's market and brand integrity by preventing former franchisees from using the company's confidential information and business model to compete against them or existing franchisees after their agreement ends.