Where in the FDD can I find information about restrictions regarding the customers a Buildingstars franchisee may service?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- c.
Do or take any action to circumvent or otherwise attempt to take away or interfere with or jeopardize the business relationship between the Customer and BUILDINGSTARS.
FRANCHISEE acknowledges and agrees any interference with the Customer's business or the relationship between BUILDINGSTARS and Customers is in direct violation of this provision.
- C.
Reasonableness of Restrictions.
BUILDINGSTARS intends to restrict the activities of the FRANCHISEE under Sections IX and X of this Agreement only to the extent necessary for the protection of BUILDINGSTARS' legitimate business interests.
For the sake of clarity, nothing herein is to restrict FRANCHISEE from providing janitorial/cleaning services to any entity or person that is not a Customer; provided however, that the foregoing shall not alter FRANCHISEE's obligations, including but not limited to Section IX above, under this Agreement.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 29)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Item 22 details contract-related restrictions concerning the customers a franchisee can service. Specifically, Section IX, titled "TRADE SECRETS AND CONFIDENTIAL INFORMATION," outlines the franchisee's obligations to maintain the confidentiality of customer-related information, including customer lists, contracts, and information about real property management companies or commercial real estate owners affiliated with customers. This section prevents franchisees from divulging this information to anyone during and after the term of the agreement, protecting Buildingstars' competitive advantage.
Additionally, Item 22 includes stipulations that protect Buildingstars' customer relationships. A franchisee cannot take actions to interfere with or jeopardize the business relationship between a customer and Buildingstars. However, the FDD clarifies that franchisees are not restricted from providing services to entities or persons who are not Buildingstars customers, as long as it doesn't violate other obligations, such as maintaining confidentiality.
Buildingstars also retains the right to discontinue a franchisee's service to a customer account if it determines the franchisee is not adequately servicing the customer. Factors include customer complaints, unresponsiveness, or allegations of theft or breakage. In such cases, Buildingstars is not obligated to replace the customer account. These provisions collectively define the scope and limitations regarding the customers a Buildingstars franchisee can solicit and service, both during and after the franchise agreement.