Does the Buildingstars definition of 'Customer' 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's 2025 Franchise Disclosure Document, the definition of 'Customer' does include affiliates of existing customers. Specifically, the definition extends to any affiliate, successor in interest, subsidiary, sibling company, or parent company of any customer or prospective customer. This definition is important because it broadens the scope of who Buildingstars considers to be a customer in relation to the franchise agreement.
For a prospective Buildingstars franchisee, this definition has several implications. It means that the franchisee's obligations and restrictions regarding customers extend not only to direct customers but also to their related entities. This could impact non-solicitation agreements and other contractual obligations, as the franchisee may be restricted from soliciting or providing services to a wider range of entities connected to their direct customers.
This broad definition is not uncommon in franchise agreements, as franchisors often seek to protect their customer base and prevent franchisees from leveraging their access to customers for independent gain. Franchisees should carefully consider the implications of this definition and how it may affect their ability to grow their business or engage with potential clients who may be affiliated with existing customers.