How is the fee calculated if a Buildingstars franchisee breaches the non-solicitation provision?

According to Buildingstars's 2025 Franchise Disclosure Document, if a franchisee breaches the non-solicitation provision, they must pay Buildingstars a fee. This fee is calculated as three times the monthly amount that the customer agreed to pay for services. This penalty applies if the franchisee, their relatives, or associates directly or indirectly provide services to a customer they served or learned about through Buildingstars.

This non-solicitation agreement is in effect during the term of the Franchise Agreement and for one year after its transfer, expiration, or termination. It also applies after a court order enforcing the covenant. This means that even after the franchise relationship ends, the franchisee is restricted from soliciting Buildingstars' customers.

This provision is designed to protect Buildingstars' customer relationships and prevent franchisees from unfairly competing using information and connections gained during their time with the franchise. The fee serves as a deterrent against soliciting customers and compensates Buildingstars for potential losses resulting from such actions. Prospective franchisees should carefully consider this non-solicitation clause and its financial implications before entering into an agreement with Buildingstars.