Can a Buildingstars franchisee solicit a service provider to terminate their relationship with Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ility companies, or other entities or otherwise perform any services for, engage in or acquire, be an employee of, have any financial interest in, loan money to, or have any interest based on profits or revenues of, any cleaning service business or janitorial business within the Area or within any 10 mile
area where BUILDINGSTARS or any Affiliate, franchisee or licensee of BUILDINGSTARS is operating.
B. Non-Solicitation.
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- 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting Buildingstars's service providers. 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 or soliciting any service provider. This restriction includes attempting to persuade service providers to terminate or materially alter their employment, engagement, franchise relationship, or other business relationship with Buildingstars, its affiliates, or other franchisees. This restriction applies whether the franchisee is acting directly or indirectly, for themselves or any other entity except Buildingstars.
This non-solicitation clause is designed to protect Buildingstars's relationships with its service providers, ensuring stability and continuity within the franchise system. It prevents franchisees from poaching service providers for their own ventures or for the benefit of other businesses, which could disrupt Buildingstars's operations and create unfair competition. The clause extends beyond the term of the agreement, recognizing that the relationships and knowledge gained during the franchise period could still be used to the detriment of Buildingstars even after the franchise ends.
For a prospective Buildingstars franchisee, this means they must be careful not to engage in any activity that could be construed as soliciting or encouraging a service provider to leave Buildingstars. This includes direct contact, indirect communication through third parties, or even providing information that could lead a service provider to consider terminating their relationship. Violation of this provision could result in legal action and potential damages, as Buildingstars seeks to protect its business interests and maintain the integrity of its service provider network. Franchisees should ensure they understand the scope of this restriction and take steps to avoid any actions that could be seen as a breach of the agreement.