Is a Buildingstars franchisee allowed to notify a customer of their new affiliation after the franchise agreement terminates?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ility companies, or other entities or otherwise perform any services for, engage in or acquire, be an employee of, have any financial interest in, loan money to, or have any interest based on profits or revenues of, any cleaning service business or janitorial business within the Area or within any 10 mile
area where BUILDINGSTARS or any Affiliate, franchisee or licensee of BUILDINGSTARS is operating.
B. Non-Solicitation.
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- 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.
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Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is restricted from notifying customers of their new affiliation or employment after the franchise agreement terminates. Specifically, for one year after the agreement's transfer, expiration, or termination, or after a court order enforcing the non-solicitation covenant, the franchisee is prohibited from contacting or soliciting Buildingstars's customers for any reason other than providing services under the original agreement. This includes notifying customers of the franchisee's new business ventures or employment.
This restriction means that a former Buildingstars franchisee cannot leverage their relationships with customers they served during their franchise term to start a competing business or work for another cleaning service. The non-solicitation clause aims to protect Buildingstars's customer base and prevent franchisees from unfairly capitalizing on the goodwill and customer relationships established under the Buildingstars brand.
If a franchisee violates this non-solicitation provision, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services. This penalty serves as a deterrent against soliciting Buildingstars customers and underscores the importance of adhering to the terms of the franchise agreement, even after its termination. Prospective franchisees should carefully consider these restrictions and their potential impact on their future business endeavors before entering into a franchise agreement with Buildingstars.