After termination or expiration of the Kitchen Solvers Franchise Agreement, what rights do I have to open or operate additional Kitchen Solvers businesses?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration of the term, or upon termination of this Agreement, regardless of the cause for termination, you will have no further right to open or operate additional Businesses which are not, at the time of such termination or expiration, the subject of a then existing Franchise Agreement between you and us which is in full force and effect. You acknowledge that during and after the expiration or earlier termination of this Agreement, we may open and operate, and license others the right to open and operate one or more Businesses anywhere in the Development Area, subject to any territorial rights granted to you or any Developer Affiliate, as applicable, under any Franchise Agreement then in effect.
7. COVENANTS: NON COMPETITION/CONFIDENTIALITY/COMPLIANCE WITH LAWS
7.1 Non-Compete
- 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.
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.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, a franchisee has no further right to open or operate additional Kitchen Solvers businesses that are not already subject to an existing Franchise Agreement in full force and effect at the time of termination or expiration. Kitchen Solvers retains the right to open and operate, or license others to open and operate, Kitchen Solvers businesses anywhere in the Development Area after the agreement's expiration or termination. This is subject to any territorial rights granted to the franchisee or any Developer Affiliate under a Franchise Agreement then in effect.
Furthermore, the franchisee is subject to a non-compete covenant. For two years after the expiration or termination of the Franchise Agreement, the franchisee and their owners, officers, and agents are prohibited from participating in any Competitive Business. This includes being an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent in a Competitive Business.
The non-compete restrictions apply within: (a) the Development Area; (b) a twenty-five (25) mile radius of the Development Area; (c) any other Kitchen Solvers franchisee's territory or 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. A "Competitive Business" is defined as any kitchen and/or bathroom remodeling business, cabinet refacing business, or any business selling similar products and services, as well as any business that franchises or licenses the right to open and operate such a business.