Is a Buildingstars franchisee prohibited from notifying a customer of their new affiliation after leaving the Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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;
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- 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.
Source: Item 23 — RECEIPT (FDD pages 43–217)
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 after the termination or expiration of the franchise agreement. Specifically, during the term of the agreement and for one year afterward, the franchisee cannot contact, solicit, or aid in the contact or solicitation of any customer to whom they provided services or were introduced to as a Buildingstars franchisee. This restriction applies regardless of the reason for termination or expiration of the agreement.
This provision means that a former Buildingstars franchisee is prohibited from informing their past Buildingstars customers about their new business ventures or employment in the cleaning or janitorial services industry. The franchisee is prevented from leveraging the relationships and knowledge gained during their time with Buildingstars to compete against the franchisor or other franchisees. This restriction is in place to protect Buildingstars' customer base and business relationships.
If a franchisee violates this restrictive covenant, they must pay Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services. This penalty serves as a deterrent against soliciting former customers. The FDD also states that Buildingstars can seek injunctive relief for violations or threatened violations of this covenant, meaning they can go to court to prevent a former franchisee from contacting customers.
Buildingstars emphasizes that these restrictions are intended to protect their legitimate business interests and are deemed reasonable. However, the agreement clarifies that franchisees are not restricted from providing services to entities or persons who were not customers of Buildingstars. This allows former franchisees to continue working in the janitorial/cleaning services industry, as long as they do not target customers they acquired through the Buildingstars franchise.