Besides the Area defined in the Buildingstars Franchise Agreement, what is the geographic scope of the non-competition clause?

According to Buildingstars' 2025 Franchise Disclosure Document, the non-competition clause extends to any area where Buildingstars or its affiliates, franchisees, or licensees are operating. This means that the restriction on a franchisee's activities isn't limited to their specific territory but applies wherever the Buildingstars brand has a presence.

Specifically, during the term of the Franchise Agreement and for one year after its termination, the franchisee is restricted from providing services to any customer they served or were introduced to through Buildingstars. This restriction applies regardless of the franchisee's assigned territory, as it focuses on preventing the franchisee from leveraging their association with Buildingstars to unfairly compete for existing Buildingstars customers.

Furthermore, the Buildingstars Franchise Agreement clarifies that nothing prevents a franchisee from offering cleaning services to entities or individuals who are not Buildingstars customers. However, this allowance does not override the franchisee's obligations, including non-solicitation clauses, within the agreement. Buildingstars also retains the right to modify the scope of the non-compete agreement.

This broad geographic scope and the customer-specific restrictions have significant implications for prospective franchisees. It is important to understand that the non-compete extends beyond the franchisee's territory and that Buildingstars can seek injunctive relief for violations or threatened violations of these restrictions.