Does the Buildingstars franchise agreement restrict a franchisee from advising others of the opportunity to provide cleaning services to Buildingstars customers after termination?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
B. Non-Solicitation.
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Provide or attempt to provide (or others of the opportunity to provide), directly or indirectly, any Services to any Customer for which FRANCHISEE has rendered services under this Agreement or to which FRANCHISEE has been introduced by or about which FRANCHISEE has received information by being a Buildingstars franchisee.
- b.
In the event that there is a breach of this provision, Franchisee shall pay BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid by the Customer for the Services.
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Contact, solicit, attempt to contact or solicit, or participate or aid with the contact or solicitation of or provide or attempt to provide (or advise others of the opportunity to provide directly or indirectly any cleaning or janitorial services to any Customer for any reason other than providing services pursuant to this Agreement, including but not limited to notifying any Customer of FRANCHISEE'S new affiliation or employment;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the franchise agreement includes non-solicitation clauses that restrict a franchisee's actions both during the term of the agreement and for one year after its termination. Specifically, a franchisee is prohibited from advising others of opportunities to provide cleaning services to Buildingstars customers.
This restriction means that after the franchise agreement ends, a former Buildingstars franchisee cannot directly or indirectly advise anyone of the opportunity to offer cleaning or janitorial services to any customer they served or learned about through Buildingstars. This includes notifying customers of the franchisee's new business affiliations or employment. This non-solicitation clause extends not only to the franchisee but also to their relatives and associates.
These types of non-solicitation agreements are common in franchising to protect the franchisor's customer base and business relationships. The penalty for breaching this provision is a fee equal to three times the monthly amount the customer agreed to pay for services. This underscores the importance of adhering to the non-solicitation terms to avoid significant financial repercussions.
The Buildingstars franchise agreement also clarifies that these restrictions are intended to protect Buildingstars' legitimate business interests. However, the agreement does not prevent a franchisee from providing janitorial or cleaning services to entities or persons who are not Buildingstars customers, as long as it doesn't violate other obligations within the agreement.