factual

Is a Buildingstars franchisee prohibited from soliciting Buildingstars service providers to terminate their relationship with Buildingstars?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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;
    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 soliciting Buildingstars service providers to terminate their relationship with Buildingstars. During the term of the agreement, the franchisee cannot contact or solicit any service provider for the purpose of encouraging them to terminate or alter their relationship with Buildingstars, its affiliates, or other franchisees. This restriction is in place to protect Buildingstars' business interests and relationships with its service providers.

This restriction extends to attempting to contact or solicit service providers, as well as participating or aiding in such activities. The franchisee is also prohibited from taking any action to circumvent or interfere with the business relationship between Buildingstars and its customers. Any interference with customer relationships is considered a direct violation of this provision.

Buildingstars clarifies that these restrictions are intended to be only as extensive as necessary to protect its legitimate business interests. The franchisee is not restricted from providing janitorial/cleaning services to entities or persons who are not Buildingstars customers, as long as it does not interfere with the franchisee's obligations under the agreement. The agreement also states that the restrictions are considered reasonable and their enforcement will not unduly burden the franchisee's ability to earn a livelihood.

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.