How does Buildingstars define a 'Customer' in the franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer 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, the franchise agreement defines 'Customer' broadly. It includes not only existing customers of Buildingstars, its affiliates, the franchisee, or any other franchisee, but also prospective customers. This definition extends to anyone with whom the franchisee or their employees have had direct or indirect contact, or about whom they've learned information through communications with Buildingstars, its affiliates, or other franchisees, through operating the business, or due to the transfer or termination of the franchise agreement.
This definition also encompasses affiliates, successors in interest, subsidiaries, sibling companies, or parent companies of any such customer or prospective customer. This means that the definition of 'Customer' is not limited to the direct entity receiving cleaning services but extends to related entities as well.
For a prospective Buildingstars franchisee, this expansive definition is significant because it clarifies the scope of customer relationships that are protected under the franchise agreement. It potentially impacts non-compete clauses or restrictions on soliciting customers if the franchise agreement is terminated. Franchisees should be aware that their interactions and knowledge gained during their time with Buildingstars can create lasting obligations regarding who they can and cannot solicit for business in the future.