Does the Buildingstars franchise agreement restrict franchisees from providing services to any entity or person that is not a customer?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ILDINGSTARS. 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. The foregoing covenants shall be construed as severable and independent and shall be interpreted and applied consistent with the requirements of reasonableness and equity. In the event a court of competent jurisdiction shall determine the business, time, or geographic limitations contained in this Agreement are illegal, invalid or unenforceable, then, the
court so holding shall reduce the limitation necessary to render such restriction enforceable by such court. BUILDINGSTARS shall have the right to reduce the scope of any covenant contained in Sections IX and X, without FRANCHISEE'S consent, effective immediately upon receipt by FRANCHISEE of written notice thereof; and FRANCHISEE shall comply with any covenant as so modified. In addition to any other remedies available at law or equity, BUILDINGSTARS shall have the right to injunctive relief for a violation or threatened violation of the foregoing.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement does not restrict franchisees from providing janitorial/cleaning services to any entity or person that is not a customer. However, this allowance does not alter the franchisee's obligations under Section IX of the agreement.
Buildingstars intends to restrict franchisee activities under Sections IX and X of the agreement only to the extent necessary for the protection of Buildingstars' legitimate business interests. The covenants within the agreement are designed to be severable and independent, interpreted and applied with reasonableness and equity.
If a court determines any limitations within the agreement are illegal, invalid, or unenforceable, the court will reduce the limitation to render it enforceable. Buildingstars also has the right to reduce the scope of any covenant in Sections IX and X with written notice to the franchisee, who must then comply with the modified covenant. Buildingstars retains the right to injunctive relief for violations or threatened violations of the agreement. The franchisee acknowledges that the restrictions are reasonable and will not unduly burden their ability to earn a livelihood.