Does the Buildingstars definition of 'Customer' 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 customers, or any information they learn about potential customers through their affiliation with Buildingstars, could establish those prospects as protected "Customers" under the franchise agreement. This could impact the franchisee's ability to solicit or service those customers if they leave the Buildingstars system.
The definition also specifies that a "Customer" includes any affiliate, successor in interest, subsidiary, sibling company, or parent company of any such customer or prospective customer. This further expands the scope of the customer definition and could create complexities in determining which entities are considered Buildingstars's customers. Franchisees should carefully consider this definition and its potential impact on their business operations and future opportunities.
It is important for prospective franchisees to fully understand the implications of this broad customer definition, particularly in relation to non-compete and non-solicitation clauses within the franchise agreement. Understanding these definitions is crucial for navigating the Buildingstars franchise system and protecting their business interests.