Under what condition will Kitchen Solvers not establish a company-owned business or another franchise within a franchisee's territory?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers will not establish a company-owned business or another Kitchen Solvers franchise within a franchisee's territory during the term of the Franchise Agreement if the franchisee is in complete compliance with the terms and conditions of their Franchise Agreement. This provision aims to protect the franchisee's defined territory from direct competition from the franchisor or other franchisees. However, this protection is contingent upon the franchisee adhering to all stipulations outlined in the Franchise Agreement.

It is important to note that this territorial protection is not absolute. The FDD specifies that Kitchen Solvers reserves the right to establish franchises or company-owned businesses under marks other than Kitchen Solvers, both within and outside the territory. They also reserve the right to distribute products or services through alternative channels of distribution, including online platforms, under any mark, including Kitchen Solvers. Additionally, Kitchen Solvers can market and advertise within the franchisee's territory and merge or affiliate with any other brand, even a competitive one with units operating in the territory. These reservations of rights could potentially introduce competition within the franchisee's territory through different avenues.

Furthermore, Kitchen Solvers retains the right to negotiate and enter into agreements with Multi-Project Customers, providing services under the Kitchen Solvers marks, even if those customers are located within the franchisee's territory. While Kitchen Solvers may offer the franchisee the option to perform work for these Multi-Project Customers, they are not obligated to do so and may choose to provide such services themselves, through an affiliate, or through another franchisee, without compensating the original franchisee. This exception can significantly impact a franchisee's potential revenue, especially if large projects are diverted to other channels.

Prospective franchisees should carefully review the Franchise Agreement to fully understand their obligations and the conditions under which their territorial protection is maintained. They should also inquire about the potential impact of Multi-Project Customers and alternative distribution channels on their business. Understanding these limitations and exceptions is crucial for assessing the true value and security of the granted territory.