What constitutes a breach of the non-compete agreement for a Buildingstars franchisee?
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.
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.
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;
- b.
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;
- c.
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 Restrictions.
BUILDINGSTARS intends to restrict the activ
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee breaches the non-compete agreement if, during the term of the agreement and for one year after its termination, transfer, or expiration, or after a court order enforcing the covenant, the franchisee or their relatives/associates engage in specific prohibited activities. These restrictions apply regardless of the reason for termination.
Specifically, a Buildingstars franchisee (or their associates) cannot directly or indirectly provide or attempt to provide services to any customer they served or were introduced to through Buildingstars. This includes soliciting or contacting customers for cleaning or janitorial services outside the franchise agreement, or notifying customers of a new affiliation or employment.
Additionally, franchisees are prohibited from interfering with Buildingstars's relationships with its service providers. They cannot contact or solicit service providers to terminate or alter their relationship with Buildingstars, its affiliates, or other franchisees. Doing anything to undermine the business relationship between Buildingstars and its customers also constitutes a breach. If a franchisee violates the non-solicitation provision, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services.
Buildingstars can seek injunctive relief (including temporary restraining orders and preliminary injunctions) and specific performance to enforce these provisions without needing to post a bond or prove actual damages. The agreement emphasizes that all covenants, including those related to non-solicitation and non-competition, will be interpreted and applied reasonably and equitably.