Is a Buildingstars franchisee allowed to notify a customer of their new affiliation after the franchise agreement ends?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Buildingstars Franchise Disclosure Document, a franchisee is restricted from notifying customers of their new affiliation or employment for a period of one year after the franchise agreement's expiration or termination. This restriction applies regardless of the reason for termination.
Specifically, the FDD states that the franchisee cannot contact, solicit, or aid in the contact or solicitation of any customer to provide cleaning or janitorial services for any reason other than providing services under the Buildingstars agreement. This explicitly includes notifying any customer of the franchisee's new affiliation or employment. This restriction extends not only to the franchisee but also to their relatives and associates.
This non-solicitation clause is designed to protect Buildingstars' customer relationships and prevent franchisees from leveraging their knowledge of Buildingstars customers to unfairly compete with the franchisor after the agreement ends. If a franchisee breaches this provision, they may be required to pay Buildingstars a fee equal to three times the monthly amount agreed to be paid by the customer for the services.
Prospective franchisees should carefully consider the implications of this non-solicitation clause, as it significantly restricts their ability to work with former Buildingstars customers for a year after the franchise agreement terminates. It is a fairly standard practice in franchising to have a non-solicitation agreement to protect the brand's customer base.