Can Kitchen Solvers require the designated manager to sign an agreement abiding by the non-compete covenants?
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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Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers FDD, the term "you" in the non-compete covenants includes owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest. Kitchen Solvers may require these individuals to sign a non-compete agreement in a form satisfactory to them, containing the non-compete provisions outlined in the agreement. This means that if a franchisee designates a manager to supervise the Kitchen Solvers business, Kitchen Solvers has the right to demand that the manager sign a non-compete agreement.
This non-compete agreement ensures that during the term of the Franchise Agreement, the franchisee (or their designated manager) cannot engage in any construction or remodeling business, or any business selling similar products and services, outside of the authorized Kitchen Solvers business, unless Kitchen Solvers provides written consent. This restriction applies directly or indirectly, whether for themselves or in conjunction with another person or entity.
Furthermore, for a period of two years after the agreement expires or terminates, the franchisee (or their designated manager) is prohibited from owning, managing, operating, maintaining, engaging in, consulting with, or having any interest in a competing business within the specified territory. This includes the territory itself. This post-term non-compete restriction is in place regardless of the reason for termination or the sale of the Kitchen Solvers business. This is a fairly standard practice in franchising to protect the brand and system investments.