factual

How does Buildingstars define a 'Customer' in the context of the franchise agreement?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

C. "Customer" means any existing customers or prospective customers (of BUILDINGSTARS, its Affiliates, FRANCHISEE, or any other franchisee) with whom FRANCHISEE or its employees or agents have had direct or indirect contact or about whom FRANCHISEE or its employees or agents have learned information by virtue of: (1) communications with BUILDINGSTARS, its Affiliates or other BUILDINGSTARS franchisees; (2) the operation of the Business; or (3) the transfer or termination of this Agreement, and in addition, "Customer" shall include any affiliate, successor in interest, subsidiary, sibling company, or parent company of any such customer or prospective customer.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, a 'Customer' is defined broadly within the franchise agreement. This definition encompasses not only existing customers but also prospective customers of Buildingstars, its affiliates, the franchisee, or any other franchisee within the Buildingstars system. The definition extends to any entity with whom the franchisee or their employees have had direct or indirect contact, or about whom they've gained information through various channels.

These channels include communications with Buildingstars, its affiliates, or other Buildingstars franchisees, the operation of the franchisee's cleaning business, or events related to the transfer or termination of the franchise agreement. This means that any interaction or information obtained through the Buildingstars network or the franchisee's business activities could potentially establish a 'Customer' relationship under the agreement.

Furthermore, the definition of 'Customer' includes affiliates, successors in interest, subsidiaries, sibling companies, or parent companies of any such customer or prospective customer. This extended definition is significant because it broadens the scope of who Buildingstars considers a customer, potentially impacting the franchisee's ability to solicit or service these entities, especially after the franchise agreement's termination or transfer. Prospective franchisees should carefully consider this definition and its implications for their business operations and future opportunities.

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.