factual

Does the Buildingstars franchise agreement restrict additional outlets?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

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 12 — TERRITORY (FDD pages 26–27)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement does not explicitly restrict franchisees from opening additional outlets. However, the agreement does state that Buildingstars intends to restrict the activities of the franchisee under Sections IX and X of the agreement only to the extent necessary for the protection of Buildingstars' legitimate business interests.

For clarity, the agreement specifies that franchisees are not restricted from providing janitorial/cleaning services to any entity or person that is not a customer of Buildingstars. However, this does not alter the franchisee's obligations under Section IX of the agreement. This suggests that while franchisees can offer services outside the Buildingstars customer base, they must still adhere to the terms and conditions outlined in the franchise agreement.

It is important for prospective franchisees to carefully review Sections IX and X of the franchise agreement to fully understand the restrictions placed on their activities. Additionally, they should seek clarification from Buildingstars regarding any limitations on expanding their business or offering services beyond the scope of the franchise agreement. Understanding these restrictions is crucial for making an informed decision about investing in a Buildingstars franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.