Can a Buildingstars franchisee engage in any business or activity that will conflict with their obligations?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall at all times faithfully, honestly and diligently perform the obligations hereunder, use its best efforts to promote and enhance the Business, and shall not engage in any business or other activity that will conflict with the FRANCHISEE'S obligations hereunder.
FRANCHISEE agrees to and shall take all steps as are necessary to ensure it treats all Customers fairly and provide services hereunder in an honest, ethical, and nondiscriminatory manner.
Further FRANCHISEE shall not withhold any material information from its Customers or attempt to sell any service to them that FRANCHISEE believes, in its good faith estimation, is not needed.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, a franchisee is prohibited from engaging in any business or activity that would conflict with their obligations under the franchise agreement. This means a Buildingstars franchisee must dedicate their efforts to promoting and enhancing the Buildingstars business and avoid any outside ventures that could hinder their performance or commitment to the franchise.
Buildingstars also requires franchisees to adhere to high ethical standards and protect the brand's reputation. Franchisees must conduct business with honesty, integrity, and fair dealing, and avoid any actions that could discredit or harm Buildingstars, its other franchisees, or its affiliates. This reinforces the importance of prioritizing the Buildingstars business and avoiding conflicts of interest that could compromise these standards.
However, the FDD clarifies that franchisees are not restricted from providing janitorial/cleaning services to entities or persons who are not existing Buildingstars customers. This provides some flexibility for franchisees to pursue additional business opportunities outside of the Buildingstars customer base, as long as it does not interfere with their obligations to Buildingstars or violate any other terms of the franchise agreement. If a customer requests services outside the normal scope, the franchisee must notify Buildingstars and obtain approval.