Is a Buildingstars franchisee prohibited from communicating or divulging sales information or profit margins to anyone during the term of the agreement or after termination?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
IX. TRADE SECRETS AND CONFIDENTIAL INFORMATION
FRANCHISEE shall not, during the term of this Agreement, or after the Transfer, termination or expiration, communicate or divulge to anyone, any information or knowledge concerning the products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, Customers, rates, fees and terms, databases, or such other information that gives BUILDINGSTARS' Affiliate, BUILDINGSTARS and FRANCHISEE a competitive advantage over those who do not know it, and other information or material which BUILDINGSTARS may designate as confidential, nor shall FRANCHISEE disclose or divulge in whole or in part any trade secrets or operating procedures of BUILDINGSTARS or its Affiliates, Customer lists, Customer contracts, sales and promotional information, employee lists, supplier and vendor information, information regarding real property management companies or commercial real estate owners affiliated with or related to any Customer, customer account, or any commercial real estate for which BUILDINGSTARS, its Affiliates, FRANCHISEE or any other franchisee has provided commercial cleaning services; pricing information; financial information furnished or disclosed to FRANCHISEE by BUILDINGSTARS or its Affiliates and any other information with respect to BUILDINGSTARS, unless such information is generally known and in the public domain, and except to the extent necessary to operate the Business ("Confidential Information"). FRANCHISEE will exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights during and after the term of this Agreement and will endeavor to insure that its employees will also comply.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are prohibited from communicating or divulging sales information or profit margins. During the term of the agreement, or after the transfer, termination, or expiration, a Buildingstars franchisee cannot communicate to anyone information concerning products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, customers, rates, fees and terms, databases, or other information that gives Buildingstars a competitive advantage.
This extends to trade secrets or operating procedures of Buildingstars or its affiliates, customer lists, customer contracts, sales and promotional information, employee lists, supplier and vendor information, information regarding real property management companies or commercial real estate owners affiliated with any customer, customer account, or any commercial real estate for which Buildingstars, its affiliates, franchisee, or any other franchisee has provided commercial cleaning services; pricing information; financial information furnished or disclosed to the franchisee by Buildingstars or its affiliates and any other information with respect to Buildingstars. The only exception is if such information is generally known and in the public domain, and except to the extent necessary to operate the Business.
This obligation to maintain confidentiality is a significant aspect of the Buildingstars franchise agreement. Franchisees must exercise a high degree of diligence to maintain the confidentiality of all trade secrets and proprietary rights during and after the term of the agreement. This includes ensuring that their employees also comply with these confidentiality requirements. This restriction aims to protect Buildingstars' competitive advantage and sensitive business information.