Is a Buildingstars franchisee permitted to interfere with or solicit customers of Buildingstars' affiliates?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall not interfere with, service, or solicit Customers of BUILDINGSTARS, any of BUILDINGSTARS' Affiliates, or their franchisees, independent contractors or licensees.
B. Rights Reserved by BUILDINGSTARS and Affiliates. BUILDINGSTARS and its Affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses using the System and/or Marks anywhere, including within and outside of the Area. BUILDINGSTARS, its Affiliates and other franchisees and licensees are also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. BUILDINGSTARS and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from interfering with or soliciting customers of Buildingstars, its affiliates, or their franchisees, independent contractors, or licensees. This restriction is in place to protect Buildingstars' business interests and maintain the integrity of its network.
This restriction means a Buildingstars franchisee cannot actively try to take customers away from other parts of the Buildingstars system. This includes direct solicitation or any actions that could disrupt the business relationships between those customers and Buildingstars or its related entities. The FDD emphasizes that any interference with customer relationships is a direct violation of the franchise agreement.
Buildingstars and its affiliates retain the right to operate and franchise or license to third parties the right to operate businesses using the System and/or Marks anywhere, including within and outside of the Area. BUILDINGSTARS, its Affiliates and other franchisees and licensees are also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. BUILDINGSTARS and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
This provision ensures that Buildingstars and its affiliates have the freedom to expand and operate without facing undue competition from their own franchisees. Prospective franchisees should understand these restrictions and factor them into their business planning, particularly when considering the geographic area they wish to serve.