What constitutes a breach of the Buildingstars non-compete agreement regarding customer relationships?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
liability 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. 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.
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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. 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee breaches the non-compete agreement concerning customer relationships if, during the term of the agreement and for one year after its termination, transfer, or expiration, they engage in specific actions. These restricted actions apply to the franchisee, their relatives, and associates, and prohibit them from working for themselves or any other entity except Buildingstars.
Specifically, a franchisee cannot provide or attempt to provide any services to a customer for whom the franchisee has previously rendered services under the Buildingstars agreement. This also includes customers to whom the franchisee was introduced or about whom they received information due to their affiliation with Buildingstars. Furthermore, franchisees are prohibited from contacting, soliciting, or attempting to contact or solicit any Buildingstars customers for any reason other than providing services under the existing agreement. This includes notifying customers of the franchisee's new business affiliations or employment.
Additionally, franchisees must not take any actions to circumvent, interfere with, or jeopardize the business relationship between a customer and Buildingstars. The FDD clarifies that any interference with the customer's business or the relationship between Buildingstars and its customers directly violates this provision. If a franchisee breaches these non-solicitation provisions, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services.