factual

Are all covenants in the Buildingstars agreement interpreted with reasonableness and equity?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

All covenants contained in this Agreement, including but not limited to those relating to restrictive covenant, shall be interpreted and applied consistent with the requirements of reasonableness and equity.

Source: Item 23 — RECEIPT (FDD pages 43–217)

What This Means (2025 FDD)

According to Buildingstars' 2025 Franchise Disclosure Document, all covenants within the franchise agreement, including those related to restrictive covenants, will be interpreted and applied in a manner consistent with reasonableness and equity. This means that the specific terms and conditions outlined in the agreement will not be applied in an overly strict or unfair way. Instead, Buildingstars and any court involved in interpreting the agreement will consider what is fair and reasonable in the specific context of the situation.

This provision offers some protection to the franchisee, ensuring that Buildingstars cannot enforce the agreement in a way that is unduly burdensome or punitive. For example, if a specific clause seems too broad or restrictive, a court is authorized to modify or limit the restriction to the extent necessary to permit its enforcement. This ensures that the franchisee is not unfairly disadvantaged by overly aggressive enforcement of the agreement.

Furthermore, Buildingstars states its intention to restrict the franchisee's activities only to the extent necessary to protect Buildingstars' legitimate business interests. The agreement clarifies that franchisees are not restricted from providing janitorial/cleaning services to any entity or person that is not a Buildingstars customer. This provides assurance that the restrictive covenants are meant to protect the franchisor's business and customer relationships, not to prevent the franchisee from earning a livelihood after the franchise agreement ends, within the bounds of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.