Is a Buildingstars franchisee allowed to interfere with or solicit customers of Buildingstars' affiliates?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
- A. 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):
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- 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.
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- 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.
- H. Inspections of Customer Premises. BUILDINGSTARS may make periodic quality control and customer relations visits to each customer account location of FRANCHISEE.
- I. Discontinue Right to Customer Account. BUILDINGSTARS retains the right to discontinue allowing FRANCHISEE to service a Customer Account at any time if BUILDINGSTARS, in its sole discretion, determines that FRANCHISEE is not adequately servicing the customer account. Factors which BUILDINGSTARS considers include, but are not limited to, the following: Customer complaints, unresponsiveness to Customer or BUILDINGSTARS, allegations by Customer of theft or breakage, lateness or failure to complete the job in a professional manner. In such event, BUILDINGSTARS does not have any obligation to replace said Customer Account with another.
J. Customer Accounts and Billing and Collection Services. BUILDINGSTARS has subcontracted with its Affiliate, Buildingstars Operations, Inc., to provide the services relating to Customer Accounts which include billing and collection as well as possibly providing insurance as set forth herein to FRANCHISEE on behalf of BUILDINGSTARS. BUILDINGSTARS reserves the right to modify, extend or discontinue said subcontract relationship at any time.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees are restricted from interfering with the business relationships between Buildingstars, its affiliates, and customers. Specifically, a Buildingstars franchisee cannot take actions that would jeopardize the relationship between Buildingstars and its customers.
During the term of the agreement and for one year after its termination, a Buildingstars franchisee is prohibited from contacting or soliciting customers of Buildingstars. This includes attempting to provide services to any customer the franchisee served or learned about through their affiliation with Buildingstars. If a franchisee breaches this provision, they must pay Buildingstars a fee equal to three times the customer's monthly service amount.
These restrictions are intended to protect Buildingstars' legitimate business interests. However, the agreement clarifies that franchisees are not restricted from providing janitorial services to entities that are not Buildingstars customers. The FDD states that Buildingstars may periodically visit customer locations to perform quality control and customer relations visits.
Buildingstars retains the right to discontinue a franchisee's service to a customer account if they determine the franchisee is not adequately servicing the account. Factors include customer complaints, unresponsiveness, or allegations of theft. In such cases, Buildingstars is not obligated to replace the customer account. The agreement specifies that Buildingstars has subcontracted with its affiliate, Buildingstars Operations, Inc., to provide services related to customer accounts, including billing, collection, and possibly insurance.