Does the definition of 'Customer' for Buildingstars include affiliates of existing customers?
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' 2025 Franchise Disclosure Document, the definition of "Customer" includes affiliates of existing or prospective customers. Specifically, the definition extends to any affiliate, successor in interest, subsidiary, sibling company, or parent company of any customer or prospective customer with whom the franchisee or Buildingstars has had contact. This broad definition impacts a Buildingstars franchisee by potentially expanding the scope of customers they are responsible for and restricted from soliciting post-termination.
This definition means that if a Buildingstars franchisee provides services to a company, they are also considered to have a relationship with that company's affiliates, subsidiaries, and parent company. This has implications for non-solicitation agreements, as the franchisee may be restricted from soliciting or providing services to these related entities even after the franchise agreement ends.
For a prospective Buildingstars franchisee, it's crucial to understand the full scope of this definition and its potential impact on their business. They should carefully review the franchise agreement and seek legal counsel to fully understand their obligations and restrictions related to customer relationships, both during and after the franchise term. This is especially important in industries where companies often have complex corporate structures with numerous affiliates and subsidiaries.