After termination of the Kitchen Solvers agreement, is the franchisee prohibited from owning a competing business inside their former territory?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
rest 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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- You covenant that you will not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, or within two (2) years of the sale of the KITCHEN SOLVERS Business or any interest in you, 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 a Competing Business:
- a. Inside the Territory;
b. Within twenty –five (25) miles of the outer boundary of the Territory; or
c. Within any other franchisee's territory; or
d. Within twenty-five (25) miles of the outer boundary of another franchisee's territory.
For purposes of this Section 10.D, a Competing Business includes 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;
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in a competing business for two years after the termination or expiration of the franchise agreement. This restriction applies regardless of the reason for termination or the sale of the Kitchen Solvers business.
The non-compete agreement prevents the franchisee from owning, managing, operating, maintaining, engaging in, or consulting with a competing business within their former territory. The term 'you' in this context includes all owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest in the franchisee.
A 'Competing Business' is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services to Kitchen Solvers. It also includes businesses that franchise or license the right to operate a business of this type. This restriction extends not only to the franchisee's former territory but also within twenty-five (25) miles of the outer boundary of that territory, within any other franchisee's territory, and within twenty-five (25) miles of another franchisee's territory. Kitchen Solvers may also require individuals associated with the franchisee to sign a non-compete agreement.