Is a Buildingstars franchisee prohibited from notifying a customer of their new affiliation or employment after the franchise agreement ends?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
B. Non-Solicitation.
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Provide or attempt to provide (or others of the opportunity to provide), directly or indirectly, any Services to any Customer for which FRANCHISEE has rendered services under this Agreement or to which FRANCHISEE has been introduced by or about which FRANCHISEE has received information by being a Buildingstars franchisee.
- b.
In the event that there is a breach of this provision, Franchisee shall pay BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid by the Customer for the Services.
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Contact, solicit, attempt to contact or solicit, or participate or aid with the contact or solicitation of or provide or attempt to provide (or advise others of the opportunity to provide directly or indirectly any cleaning or janitorial services to any Customer for any reason other than providing services pursuant to this Agreement, including but not limited to notifying any Customer of FRANCHISEE'S new affiliation or employment;
- b.
Contact or solicit, attempt to contact or solicit, or participate or aid in the contact or solicitation of, any Service Provider for the purpose of inducing or encouraging him, her or it to terminate or materially alter their employment, engagement, franchise relationship or other business relationship with BUILDINGSTARS, any Affiliate, or other franchisee;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee is restricted from notifying customers of their new affiliation or employment under certain conditions. Specifically, during the term of the Franchise Agreement and for one year after its transfer, expiration, or termination, the franchisee (including their relatives or associates) is prohibited from contacting, soliciting, or attempting to solicit any Buildingstars customer for reasons other than providing services under the existing agreement. This includes notifying customers of the franchisee's new affiliation or employment.
This restriction means that for one year after leaving the Buildingstars franchise system, a former franchisee cannot inform their previous Buildingstars customers about their new business ventures or employment. The aim is to prevent the franchisee from taking Buildingstars customers to a competing business.
If a Buildingstars franchisee breaches this non-solicitation agreement, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services. This penalty underscores the importance Buildingstars places on protecting its customer relationships and revenue streams. Prospective franchisees should carefully consider this restriction and its potential impact on their future business activities after leaving the Buildingstars system.