After the Buildingstars agreement is terminated, for how long is a franchisee restricted from soliciting Buildingstars service providers?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
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- Provide or attempt to provide (or others of the opportunity to provide), directly or indirectly, any Services to any Customer for which FRANCHISEE has rendered services under this Agreement or to which FRANCHISEE has been introduced by or about which FRANCHISEE has received information by being a Buildingstars franchisee.
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- In the event that there is a breach of this provision, Franchisee shall pay BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid by the Customer for the Services.
B. FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
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- Contact, solicit, attempt to contact or solicit, or participate or aid with the contact or solicitation of or provide or attempt to provide (or advise others of the opportunity to provide directly or indirectly any cleaning or janitorial services to any Customer for any reason other than providing services pursuant to this Agreement, including but not limited to notifying any Customer of FRANCHISEE'S new affiliation or employment;
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- Contact or solicit, attempt to contact or solicit, or participate or aid in the contact or solicitation of, any Service Provider for the purpose of inducing or encouraging him, her or it to terminate or materially alter their employment, engagement, franchise relationship or other business relationship with BUILDINGSTARS, any Affiliate, or other franchisee;
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- 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.
C. Reasonableness of the Restriction. BUILDINGSTARS intends to restrict the activities of the FRANCHISEE under Sections IX and X of this Agreement only to the extent necessary for the protection of BUILDINGSTARS' legitimate business interests. For the sake of clarity, nothing herein is to restrict FRANCHISEE from providing janitorial/cleaning services to any entity or person that is not a Customer;
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting Buildingstars service providers during the term of the agreement and for one year after the agreement's transfer, expiration, or termination. This restriction also applies for one year after the entry of a final order of a court enforcing this covenant, whichever event occurs later. This restriction applies to the franchisee, their relatives, and associates.
Specifically, the franchisee is prohibited from contacting, soliciting, or attempting to contact or solicit any service provider. They are also barred from participating in or aiding the contact or solicitation of any service provider. The purpose of this restriction is to prevent the franchisee from inducing or encouraging service providers to terminate or materially alter their relationship with Buildingstars, its affiliates, or other franchisees.
This restrictive covenant is designed to protect Buildingstars' business interests by preventing former franchisees from poaching service providers. Buildingstars retains the right to reduce the scope of this covenant. The FDD states that Buildingstars can seek injunctive relief for violations or threatened violations of this restriction, in addition to other legal or equitable remedies. The franchisee acknowledges that these restrictions are reasonable and will not unduly burden their ability to earn a living.