Is a Buildingstars franchisee allowed to provide janitorial services to entities that are not Buildingstars customers after termination?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
rovider for the purpose of inducing or encouraging him, her or it to terminate or materially alter their employment, engagement, franchise relationship or other business relationship with BUILDINGSTARS, any Affiliate, or other franchisee;
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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.
- C. Reasonableness of the Restriction. 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. FRANCHISEE acknowledges that the restrictions imposed in this Section are reasonable and their enforcement will not cause an undue burden upon FRANCHISEE'S ability to earn a livelihood.
The terms of this Section X are assignable by BUILDINGSTARS and shall inure to the benefit of BUILDINGSTARS, as well as its successors and assigns. In the event of any assignment, sale, merger or change in ownership or structure of BUILDINGSTARS, the resulting entity shall step into the place of BUILDINGSTARS, without any additional consent of or notice to FRANCHISEE, as if the term BUILDNGSTARS were defined in this Agreement to include such entity.
XI. DEFAULT AND TERMINATION
- A. Termination by BUILDINGSTARS.
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- 30 Day Opportunity to Cure.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is permitted to provide janitorial/cleaning services to any entity or person that is not a Buildingstars customer. However, this allowance does not alter the franchisee's other obligations under the agreement.
During the term of the agreement and for one year after termination, the franchisee cannot provide services to any customer they serviced or were introduced to as a Buildingstars franchisee. If a franchisee breaches this provision, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services.
Buildingstars emphasizes that the restrictions are intended to protect their legitimate business interests and that the franchisee acknowledges the restrictions are reasonable and won't unduly burden their ability to earn a livelihood. Buildingstars can reduce the scope of any covenant with written notice to the franchisee. The agreement specifies that these covenants are severable and independent and should be interpreted reasonably.