Is a Buildingstars franchisee allowed to solicit a service provider to terminate their relationship with another Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Contact or solicit, attempt to contact or solicit, or participate or aid in the contact or solicitation of, any Service Provider 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;
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting service providers of Buildingstars, its affiliates, or other franchisees. Specifically, a Buildingstars franchisee is prohibited from contacting or soliciting any service provider with the intention of persuading them to terminate or alter their relationship with Buildingstars, its affiliates, or other franchisees. This restriction applies during the term of the Franchise Agreement.
This provision aims to protect Buildingstars' business interests by preventing franchisees from disrupting the relationships between Buildingstars and its service providers. It ensures that franchisees do not interfere with the contractual or business arrangements that Buildingstars has in place. This restriction is intended to maintain stability and prevent unfair competition within the Buildingstars franchise system.
The FDD states that these restrictions are intended to be only as extensive as necessary to protect Buildingstars' legitimate business interests. The agreement specifies that the franchisee is not restricted from providing janitorial/cleaning services to any entity or person that is not a Buildingstars customer. However, this does not alter the franchisee's obligations under the agreement, including the non-solicitation clause. Franchisees should be aware of these limitations and ensure they do not violate these terms, as doing so could lead to legal repercussions and potential termination of their franchise agreement.
Buildingstars retains the right to seek injunctive relief for any violation or threatened violation of these restrictions, indicating the seriousness with which they enforce these covenants. The franchisee acknowledges that these restrictions are reasonable and will not unduly burden their ability to earn a livelihood, suggesting that Buildingstars believes the restrictions are balanced and fair.