Besides Buildingstars, who else is exempt from the non-compete restrictions placed on a Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ility companies, or other entities or otherwise perform any services for, engage in or acquire, be an employee of, have any financial interest in, loan money to, or have any interest based on profits or revenues of, any cleaning service business or janitorial business within the Area or within any 10 mile
area where BUILDINGSTARS or any Affiliate, franchisee or licensee of BUILDINGSTARS is operating.
B. Non-Solicitation.
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- 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):
- a. 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.
- b.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, besides Buildingstars itself, the non-compete restrictions do not apply to a Buildingstars franchisee's relatives or associates.
The FDD specifies that for one year after the agreement's transfer, expiration, or termination, the franchisee, their relatives, and associates are restricted from providing services to Buildingstars customers they served or were introduced to as a franchisee. They are also restricted from soliciting Buildingstars' service providers to terminate or alter their relationship with Buildingstars.
These restrictions are designed to protect Buildingstars' customer and service provider relationships. However, the explicit exemption for the franchisee's relatives and associates to work for Buildingstars suggests that they can be employed or contracted by Buildingstars without violating the non-compete agreement.