After the termination of the Kitchen Solvers Franchise Agreement, are franchisees still prohibited from divulging trade secrets or confidential information related to the Kitchen Solvers System?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
7. COVENANTS: NON COMPETITION/CONFIDENTIALITY/COMPLIANCE WITH LAWS
7.1 Non-Compete
- 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' 2025 Franchise Disclosure Document, Section 7.1.1 outlines that during the term of the agreement, franchisees and their owners, officers, and agents are prohibited from participating in any Competitive Business. This includes acting as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent. They are also barred from diverting business or acting in a way that harms the goodwill associated with the Kitchen Solvers brand and system. 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 businesses that franchise or license the right to operate such businesses.
Furthermore, Section 7.1.2 states that for two years after the termination or expiration of the Franchise Agreement, franchisees and their associated parties are restricted from participating in a Competitive Business. This restriction applies to businesses located 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 area developer's development area.
These covenants ensure that franchisees cannot leverage confidential information or trade secrets learned during their time with Kitchen Solvers to unfairly compete with the brand or other franchisees, even after their agreement ends. This is a common practice in franchising to protect the brand's proprietary information and market position. A prospective franchisee should carefully consider the implications of these non-compete and confidentiality clauses, as they can significantly impact their ability to engage in similar business ventures after leaving the Kitchen Solvers system.