Can a Buildingstars franchisee take actions that jeopardize the business relationship between Buildingstars and its customers?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
- c. 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 Restrictions. 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from taking any action that could harm the business relationship between Buildingstars and its customers. The agreement states that franchisees must not circumvent, interfere with, or jeopardize the relationship between Buildingstars and its customers.
This restriction is a critical component of the franchise agreement, emphasizing the importance of maintaining strong customer relationships for the overall success of the Buildingstars network. Any violation of this provision is considered a direct breach of the agreement, which could lead to penalties or termination of the franchise.
However, the agreement also includes a clause on the reasonableness of restrictions, stating that Buildingstars intends to limit franchisee activities only to the extent necessary to protect its legitimate business interests. This suggests that while franchisees must avoid actions that directly harm customer relationships, they are not unduly restricted from conducting business in general. The agreement clarifies that franchisees can provide janitorial/cleaning services to entities or persons that are not Buildingstars customers, as long as it doesn't interfere with their obligations under the agreement.
Buildingstars also has the right to modify the scope of any covenant contained in Sections IX and X, without the franchisee's consent, effective immediately upon written notice. This ensures Buildingstars can adapt the restrictions as needed to protect its interests and maintain the integrity of its customer relationships. Franchisees acknowledge that these restrictions are reasonable and will not unduly burden their ability to earn a livelihood.