Must the employee non-disclosure agreement be in a form acceptable to Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
You must require all of your employees to execute a non-disclosure agreement in the form acceptable to BUILDINGSTARS relating to trade secrets and non-competition and possibly restrictive covenant and/or non-competition agreements.
Source: Item 15 — OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS (FDD pages 28–29)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees must ensure their employees sign a non-disclosure agreement. This agreement must adhere to a format that Buildingstars deems acceptable. Specifically, the agreement should address trade secrets and non-competition clauses, and may also include restrictive covenants and/or non-competition agreements.
This requirement ensures that Buildingstars maintains control over the confidentiality of its proprietary information and trade secrets. By mandating a specific form of non-disclosure agreement, Buildingstars aims to standardize the protection of its business practices and customer information across all franchise locations. This standardization helps to prevent the unauthorized dissemination of sensitive data that could harm the Buildingstars brand or provide an unfair advantage to competitors.
For a prospective Buildingstars franchisee, this means they will need to use the non-disclosure agreement provided or approved by Buildingstars for all employees. Failure to comply with this requirement could potentially lead to breaches of confidentiality and subsequent legal or financial repercussions. Franchisees should familiarize themselves with the specific terms and conditions of the approved non-disclosure agreement to ensure full compliance and to properly inform their employees of their obligations.