For Kitchen Solvers, is it understood that the term 'you' in the non-compete covenants is broadly defined in subparagraph 10.D, potentially leading to injunction, default, and termination if anyone holding interest in the franchisee entity violates the covenants?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Further, do you understand that the term "you" for purposes of the non-compete covenants is defined broadly in subparagraph 10.D, such that any actions in violation of the covenants by those holding any interest in the franchisee entity may result in an injunction, default and termination of the Franchise Agreement? Check one: □ Yes. □ No. |
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| If you answered "No" to Questions 1-7, please explain (attached additional sheets if |
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the non-compete covenants apply broadly to anyone holding an interest in the franchisee entity. Item 22 includes a question asking franchisees to confirm their understanding that the term "you" in the non-compete covenants, as defined in subparagraph 10.D, extends to all owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest.
This means that if any of these individuals violate the non-compete covenants, Kitchen Solvers has the right to seek an injunction, declare a default, and terminate the Franchise Agreement. Kitchen Solvers may also require these individuals to sign a non-compete agreement.
This broad definition of "you" is significant because it holds all parties with a financial or management stake in the Kitchen Solvers franchise accountable to the non-compete terms, not just the franchisee themselves. A prospective franchisee should carefully consider this when structuring their business and ensure that all involved parties understand and are willing to comply with the non-compete obligations, as violations can have serious consequences for the franchise.