Is a Buildingstars franchisee allowed to interfere with, service, or solicit customers of Buildingstars, its affiliates, or their franchisees, independent contractors, or licensees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
FRANCHISEE shall not interfere with, service, or solicit Customers of BUILDINGSTARS, any of BUILDINGSTARS' Affiliates, or their franchisees, independent contractors or licensees.
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;
- c.
Do or take any action to circumvent or otherwise attempt to take away or interfere with or jeopardize the business relationship between the Customer and BUILDINGSTARS.
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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are restricted from interfering with, servicing, or soliciting customers associated with Buildingstars, its affiliates, or their franchisees, independent contractors, or licensees. This restriction applies during the term of the Franchise Agreement and extends for one year after the agreement's transfer, expiration, or termination. This includes any attempt to provide services to customers the franchisee has served or gained information about through their affiliation with Buildingstars.
Specifically, a Buildingstars franchisee cannot contact or solicit any customer for reasons other than providing services under the Franchise Agreement. This includes notifying customers of a franchisee's new business affiliations or employment. Additionally, franchisees are prohibited from interfering with the business relationships between Buildingstars and its customers.
If a franchisee breaches these non-solicitation provisions, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services. However, these restrictions are intended to protect Buildingstars' legitimate business interests and do not prevent a franchisee from providing janitorial/cleaning services to entities or persons who are not existing Buildingstars customers.