According to the Buildingstars franchise agreement, what entities are considered 'Affiliates' of Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
I. DEFINITIONS
For purposes of this Agreement, the following terms shall have the meaning as set forth below and the definitions constitute an integral part of this Agreement:
- A. "Affiliate" means any and all entities that are or may control, be controlled by, or under common ownership with BUILDINGSTARS including but not limited to Buildingstars, Inc. (f/k/a Advantage Building Services, Inc.), Buildingstars Operations, Inc. (f/k/a Buildingstars STL Operations, Inc.), Buildingstars International, Inc., Green Sky Franchise Group, Inc., Facility Brands, Inc. and Green Sky Southwest, Inc.
- B. "Business" means the cleaning business that FRANCHISEE will operate under this Agreement using the System and Marks.
- C. Customer" means any existing customers or prospective customers (of BUILDINGSTARS, its Affiliates, FRANCHISEE, or any other franchisee) with whom FRANCHISEE or its employees or agents have had direct or indirect contact or about whom FRANCHISEE or its employees or agents have learned information by virtue of: (1) communications with BUILDINGSTARS, its Affiliates or other BUILDINGSTARS franchisees; (2) the operation of the Business; or (3) the transfer or termination of this Agreement, and in addition, "Customer" shall include any affiliate, successor in interest, subsidiary, sibling company, or parent company of any such customer or prospective customer.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, an 'Affiliate' includes any entities that control, are controlled by, or are under common ownership with Buildingstars. This definition is integral to the franchise agreement, as it clarifies the scope of relationships and responsibilities within the Buildingstars network.
Specifically, the agreement lists several entities as examples of Buildingstars's Affiliates. These include Buildingstars, Inc. (formerly known as Advantage Building Services, Inc.), Buildingstars Operations, Inc. (formerly known as Buildingstars STL Operations, Inc.), Buildingstars International, Inc., Green Sky Franchise Group, Inc., Facility Brands, Inc., and Green Sky Southwest, Inc. This list is not exhaustive, as the definition includes any entities that meet the criteria of control or common ownership.
For a prospective Buildingstars franchisee, understanding this definition is crucial. It clarifies that Buildingstars's obligations and the franchisee's rights may extend to or be limited by these affiliated entities. For instance, the franchisee's customer base includes customers of Buildingstars, its affiliates, and other franchisees. Additionally, the franchisee is restricted from soliciting service providers of Buildingstars, its affiliates, or other franchisees. This broad definition of 'Affiliate' ensures that the franchisee's actions do not negatively impact the broader Buildingstars network.