What condition triggers the Buildingstars franchisee's obligation to pay the Customer Development Fee?

According to Buildingstars's 2025 Franchise Disclosure Document, the Customer Development Fee is triggered if a franchisee, or any employee or affiliate of the franchisee, performs services similar to those covered by the Franchise Agreement outside of the agreement's scope. This obligation extends both during the term of the agreement and for one year after its termination, expiration, or transfer.

Specifically, if a Buildingstars franchisee or their affiliate provides cleaning or related services to a customer that would normally be serviced under the franchise agreement, but does so independently, the franchisee must pay Buildingstars a fee. This fee is calculated as three times the monthly amount agreed to be paid to the franchisee (or their employee or affiliate) for those services.

This provision is designed to prevent franchisees from diverting business away from the Buildingstars franchise system. It ensures that Buildingstars is compensated for business generated using the brand's resources and reputation, even if the services are technically performed outside the formal franchise agreement. Prospective franchisees should carefully consider this obligation, as it could significantly impact their revenue if they engage in independent service arrangements with customers, even after the franchise agreement ends.