Can a Buildingstars franchisee contact a service provider to encourage them to terminate their relationship with Buildingstars?
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.
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 contacting Buildingstars's service providers to influence their relationship with the company. Specifically, during the term of the Franchise Agreement and for one year after its transfer, expiration, or termination, a franchisee cannot solicit any service provider to terminate or alter their relationship with Buildingstars, its affiliates, or other franchisees. This restriction applies to the franchisee, their relatives, and associates.
This non-solicitation clause is designed to protect Buildingstars's relationships with its service providers, ensuring stability and continuity in its operations. It prevents franchisees from potentially disrupting the network by poaching or interfering with these relationships. The restriction extends beyond the active term of the agreement, lasting for one year after the agreement ends, providing an additional layer of protection for Buildingstars.
For a prospective Buildingstars franchisee, this means they must avoid any actions that could be interpreted as an attempt to lure service providers away from Buildingstars. This includes direct contact, indirect solicitation through third parties, or any form of encouragement to terminate or change their business relationship with Buildingstars. Failure to comply with this provision could result in legal action or other penalties as outlined in the franchise agreement.
This type of restriction is common in franchising to protect the franchisor's established network and business relationships. Franchisees should be aware of these limitations and ensure they understand the scope of the non-solicitation clause to avoid any unintentional violations.