factual

What is a Buildingstars franchisee prohibited from doing that would jeopardize the business relationship between a customer and Buildingstars?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Do or take any action to circumvent or otherwise attempt to take away or interfere with or jeopardize the business relationship between the Customer and BUILDINGSTARS. FRANCHISEE acknowledges and agrees any interference with the Customer's business or the relationship between BUILDINGSTARS and Customers is in direct violation of this provision.
  • C. Reasonableness of the Restriction. BUILDINGSTARS intends to restrict the activities of the FRANCHISEE under Sections IX and X of this Agreement only to the extent necessary for the protection of BUILDINGSTARS' legitimate business interests. For the sake of clarity, nothing herein is to restrict FRANCHISEE from providing janitorial/cleaning services to any entity or person that is not a Customer; provided however, that the foregoing shall not alter FRANCHISEE's obligations, including but not limited to Section IX above, under this Agreement. The foregoing covenants shall be construed as severable and independent and shall be interpreted and applied consistent with the requirements of reasonableness and equity. In the event a court of competent jurisdiction shall determine the business, time, or geographic limitations contained in this Agreement are illegal, invalid or unenforceable, then, the court so holding shall reduce the limitation necessary to render such restriction enforceable by such court. 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. In addition to any other remedies available at law or equity, BUILDINGSTARS shall have the right to injunctive relief for a violation or threatened violation of the foregoing. FRANCHISEE acknowledges that the restrictions imposed in this Section are reasonable and their enforcement will not cause an undue burden upon FRANCHISEE'S ability to earn a livelihood.

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

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is prohibited from taking any action that could circumvent, interfere with, or jeopardize the business relationship between a customer and Buildingstars. The FDD emphasizes that any interference with a customer's business or the relationship between Buildingstars and its customers is a direct violation of this provision. This restriction is in place to protect Buildingstars's legitimate business interests.

This means a Buildingstars franchisee must be careful not to undermine Buildingstars's relationship with its customers. This could include actions such as directly soliciting Buildingstars's customers for a different business venture or disparaging Buildingstars's services to the customer. The franchisee's focus should remain on providing quality service under the Buildingstars brand and system, without attempting to create a separate or competing relationship with the customer.

Buildingstars retains the right to seek injunctive relief for any violation or threatened violation of this provision, highlighting the importance of maintaining the integrity of the customer relationships. While the franchisee is restricted from interfering with Buildingstars's customer relationships, the agreement clarifies that the franchisee is not restricted from providing janitorial/cleaning services to any entity or person that is not a Buildingstars customer.

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.