Can Kitchen Solvers require me to obtain non-compete agreements from my employees?
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)
Based on the 2025 Kitchen Solvers Franchise Disclosure Document, the document does not explicitly state whether Kitchen Solvers requires franchisees to obtain non-compete agreements from their employees. However, the agreement does state that the franchisee, along with their owners, officers, and agents, are subject to certain non-compete restrictions during the term of the agreement and for a period of two years after its expiration or termination. These restrictions prevent them from participating in any Competitive Business, which includes kitchen and/or bathroom remodeling, cabinet refacing, or any business selling similar products and services.
The non-compete extends to various capacities such as owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent. The restrictions apply within the Development Area, a 25-mile radius of it, any other Kitchen Solvers franchisee's territory, or within a 25-mile radius of another franchisee's territory. This suggests that Kitchen Solvers places a high importance on preventing competition both during and after the franchise agreement term.
Given the lack of explicit information regarding employee non-compete agreements, it is important for a prospective franchisee to seek clarification from Kitchen Solvers. Specifically, they should inquire whether they are obligated to have their employees sign non-compete agreements and, if so, what the terms and conditions of those agreements should be. Understanding these obligations is crucial for managing business operations and employee relations effectively.