During the term of the Kitchen Solvers agreement, are franchisees permitted to be employed by a Competitive Business?
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)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, franchisees and their owners, officers, and agents are restricted from participating in a Competitive Business during the term of the Franchise Agreement. This includes involvement as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent. This restriction applies whether the involvement is direct, indirect, or through another person or entity.
A "Competitive Business" is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services to those offered by a Kitchen Solvers franchise. It also includes businesses that franchise or license the right to operate a business of that type. This non-compete clause aims to protect Kitchen Solvers's market position and proprietary business methods by preventing franchisees from simultaneously working for or owning a competing business.
This restriction extends beyond direct employment and covers any role that could potentially benefit a competitor. The FDD also states that franchisees are prohibited from diverting or attempting 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. This is designed to ensure that franchisees remain fully committed to the success of their Kitchen Solvers franchise and do not use their position to undermine the brand.
After the agreement expires or terminates, a similar non-compete clause remains in effect for two years. During this period, franchisees and their owners, officers, and agents are prohibited from participating in a Competitive Business within the Development Area, within a 25-mile radius of the Development Area, within any other Kitchen Solvers franchisee's territory or area developer's development area, or within a 25-mile radius of another franchisee's territory or another area developer's development area.