factual

What actions are Buildingstars franchisees prohibited from taking that would jeopardize the business relationship between Buildingstars and its customers?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

  • c.

Do or take any action to circumvent or otherwise attempt to take away or interfere with or jeopardize the business relationship between the Customer and BUILDINGSTARS.

FRANCHISEE acknowledges and agrees any interference with the Customer's business or the relationship between BUILDINGSTARS and Customers is in direct violation of this provision.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are prohibited from taking any actions that could harm the business relationship between Buildingstars and its customers. Specifically, franchisees must not circumvent, interfere with, or jeopardize the relationship between Buildingstars and its customers. The agreement emphasizes that any interference with a customer's business or the relationship between Buildingstars and its customers is a direct violation of the franchise agreement.

This restriction is designed to protect Buildingstars's business interests by ensuring that franchisees do not attempt to take customers away from the system or otherwise undermine the relationship between Buildingstars and its clientele. This is a fairly standard clause in franchise agreements, as franchisors need to safeguard their customer base and brand reputation.

Buildingstars also retains the right to discontinue allowing a franchisee to service a customer account if Buildingstars determines, in its sole discretion, that the franchisee is not adequately servicing the customer account. Factors Buildingstars considers include customer complaints, unresponsiveness, allegations of theft or breakage, lateness, or failure to complete the job professionally. Buildingstars is not obligated to replace the customer account in such cases. This clause gives Buildingstars significant control over customer relationships and the quality of service provided by its franchisees.

Prospective franchisees should carefully consider these restrictions and understand that Buildingstars has the authority to terminate a customer account if they are not satisfied with the franchisee's performance. This could have a significant impact on a franchisee's revenue and profitability, so it is important to maintain high standards of service and customer satisfaction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.