What is Kitchen Solvers prohibited from doing within the Development Area, assuming the franchisee is in compliance with the Development Agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
7. COVENANTS: NON COMPETITION/CONFIDENTIALITY/COMPLIANCE WITH LAWS
7.1 Non-Compete
- 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, there are restrictions on a franchisee's activities during and after the term of the agreement. During the agreement, the franchisee cannot participate in any Competitive Business as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent. They also cannot divert or attempt to divert any present or prospective business or customer of any Kitchen Solvers Business to any competitor, or perform any act injurious or prejudicial to the goodwill associated with the Marks and the System. A Competitive Business is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business that sells similar products and services, including businesses that franchise or license the right to open and operate such businesses.
Post-termination, for a period of two years after the agreement expires or is terminated, the franchisee and their owners, officers, and agents are restricted from participating in a Competitive Business. This restriction applies within the Development Area, within a twenty-five (25) mile radius of the Development Area, within any other Kitchen Solvers franchisee's territory or area developer's development area, or within a twenty-five (25) mile radius of another franchisee's territory or another area developer's development area.
These non-compete clauses are designed to protect Kitchen Solvers' market and brand integrity. However, the FDD also notes that in certain states like California, these extended non-compete provisions may not be enforceable under state law. Prospective franchisees should be aware of these restrictions and consult with legal counsel to understand their enforceability in their specific jurisdiction.