Does the definition of 'Customer' for Buildingstars include prospective 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" explicitly includes prospective customers. This definition extends to prospective customers of Buildingstars, its affiliates, the franchisee, or any other franchisee within the Buildingstars system.
This broad definition has significant implications for a Buildingstars franchisee. It means that any contact the franchisee or their employees have with potential clients, or any information they learn about potential clients through the Buildingstars network, immediately classifies those individuals or entities as "Customers" under the agreement. This is particularly important because the franchise agreement likely contains clauses restricting the franchisee's ability to solicit or conduct business with customers, especially after the franchise agreement ends.
Therefore, a Buildingstars franchisee needs to be very careful about how they interact with any potential clients and how they manage information they receive about potential clients. The franchisee should seek legal counsel to fully understand the restrictions related to "Customers" and how those restrictions could impact their business operations, both during the term of the franchise agreement and after its termination.