What is the financial penalty if a Buildingstars franchisee breaches the non-compete provision by providing services to a Buildingstars customer?

According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee who violates the non-compete agreement by providing services to a Buildingstars customer will incur a financial penalty. Specifically, the franchisee must pay Buildingstars a fee equal to three times the monthly amount that the customer agreed to pay for the services. This penalty applies if the franchisee provides services to a customer they serviced under the Buildingstars agreement or were introduced to as a Buildingstars franchisee.

This non-compete provision is in effect during the term of the Franchise Agreement and for one year after the agreement's transfer, expiration, or termination. It also applies for one year after a court order enforcing the covenant. The restriction extends to the franchisee, their relatives, and associates, preventing them from directly or indirectly offering services to Buildingstars customers, except on behalf of Buildingstars itself.

This financial penalty is designed to protect Buildingstars' customer relationships and revenue streams. It serves as a deterrent to prevent franchisees from leaving the system and directly competing with Buildingstars by soliciting or providing services to existing customers. Prospective franchisees should carefully consider this provision and its potential financial implications before entering into a franchise agreement with Buildingstars.