Is a Buildingstars franchisee restricted from soliciting orders from outside of their designated area?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
II. GRANT
- A. Area. Subject to the terms and conditions of this Agreement, BUILDINGSTARS hereby grants to FRANCHISEE the nonexclusive right and license to use the System and Marks in connection with the operation of the Business under BUILDINGSTARS' "On-Site Manager Program". FRANCHISEE will operate the Business only within the metropolitan area listed in Exhibit I attached hereto ("Area"). FRANCHISEE shall not interfere with, service, or solicit Customers of BUILDINGSTARS, any of BUILDINGSTARS' Affiliates, or their franchisees, licensees, or independent contractors.
- B. Rights Reserved by BUILDINGSTARS and Affiliates. BUILDINGSTARS and its Affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses using the System and/or Marks anywhere, including within and outside of the Area. BUILDINGSTARS, its Affiliates and other franchisees and licensees are also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. BUILDINGSTARS and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
Source: Item 12 — TERRITORY (FDD pages 26–27)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars grants the franchisee a nonexclusive right to operate within a defined metropolitan area. However, this right is subject to certain restrictions. The franchisee is explicitly prohibited from interfering with, servicing, or soliciting customers of Buildingstars, its affiliates, or other franchisees, licensees, or independent contractors.
Buildingstars and its affiliates retain the right to operate and franchise or license others to operate businesses using the Buildingstars system and marks anywhere, including both within and outside the franchisee's designated area. This means that Buildingstars can have multiple franchisees, licensees, or even operate its own businesses in the same area as a franchisee. Buildingstars and its affiliates can also operate similar businesses under different marks or systems anywhere, including within the franchisee's area.
Furthermore, Buildingstars and its affiliates are authorized to sell products and services through any distribution channel, including wholesale, and to provide management or consulting services using the Buildingstars system and marks. This broad reservation of rights by Buildingstars and its affiliates could potentially impact a franchisee's ability to solicit customers and grow their business, even within their designated area.
In summary, while a Buildingstars franchisee is granted a nonexclusive right to operate within a specific area, they are restricted from soliciting customers of Buildingstars, its affiliates, and other franchisees. Buildingstars retains significant rights to operate and franchise its system both within and outside the franchisee's area, which could affect the franchisee's business opportunities.