Besides Buildingstars, are there any other entities for which a franchisee can provide services to a Buildingstars customer during the non-solicitation period?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee is restricted from providing services to Buildingstars customers during the term of the agreement and for one year after its termination. The only exception to this restriction is Buildingstars itself. The franchisee, their relatives, or associates cannot directly or indirectly provide services to any customer they served or were introduced to through Buildingstars, except on behalf of Buildingstars.
This non-solicitation clause prevents a franchisee from leveraging their knowledge of Buildingstars' customers to start a competing business or work for another entity that could take away business from Buildingstars. The agreement specifically states that the franchisee cannot provide services to these customers for themselves or for any other person or entity, except Buildingstars.
If a franchisee breaches this non-solicitation provision, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services. This penalty is in place to protect Buildingstars' customer relationships and revenue streams. The non-solicitation agreement remains in effect for one year after the agreement ends, regardless of the reason for termination.