factual

What must a Buildingstars franchisee do if Buildingstars modifies the restrictive covenant?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 23 — RECEIPT (FDD pages 43–217)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars has the right to reduce the scope of any covenant contained in Sections IX and X of the franchise agreement without the franchisee's consent. This modification becomes effective immediately once the franchisee receives written notice from Buildingstars.

Upon receiving this notice, the franchisee is obligated to comply with the restrictive covenant as it has been modified by Buildingstars. This means the franchisee must adhere to the new limitations or changes outlined in the written notice.

This clause gives Buildingstars considerable flexibility to adjust the restrictive covenants, potentially impacting the franchisee's business operations and competitive activities. It is important for prospective franchisees to understand that these changes can be made without their explicit agreement and that compliance is mandatory upon notification.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.