What are the Buildingstars franchisee's obligations regarding customer complaints (Item 9) and how does this relate to post-termination obligations (Item 17)?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ting customer account. If BUILDINGSTARS offers FRANCHISEE a new Customer account, FRANCHISEE must follow the procedures set forth in the Confidential Operations Manual for rejecting or accepting the customer account. FRANCHISEE is under no obligation to accept any customer accounts. In addition, FRANCHISEE has the right to give BUILDINGSTARS back any customer account so long as it gives BUILDINGSTARS at least ten (10) days prior written notice of its intent to return the customer account and FRANCHISEE shall not be entitled to any compensation for giving back the account.
G.
- H. Inspections of Customer Premises. BUILDINGSTARS may make periodic quality control and customer relations visits to each customer account location of FRANCHISEE.
- I. Discontinue Right to Customer Account. BUILDINGSTARS retains the right to discontinue allowing FRANCHISEE to service a Customer Account at any time if BUILDINGSTARS, in its sole discretion, determines that FRANCHISEE is not adequately servicing the customer account. Factors which BUILDINGSTARS considers include, but are not limited to, the following: Customer complaints, unresponsiveness to Customer or BUILDINGSTARS, allegations by Customer of theft or breakage, lateness or failure to complete the job in a professional manner. In such event, BUILDINGSTARS does not have any obligation to replace said Customer Account with another.
J. Customer Accounts and Billing and Collection Services.
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, customer complaints directly impact a franchisee's ability to service accounts and can lead to termination. Buildingstars retains the right to discontinue a franchisee's service of a customer account if Buildingstars determines, in its sole discretion, that the franchisee is not adequately servicing the customer. Factors considered include customer complaints, unresponsiveness, allegations of theft or breakage, and failure to complete jobs professionally. Buildingstars is not obligated to replace a discontinued customer account. Moreover, Buildingstars may conduct quality control and customer relations visits to customer locations.
Upon termination of the Franchise Agreement, the Buildingstars franchisee must immediately cease providing services to all customers and forfeits all rights to those customer accounts. Buildingstars can request the franchisee to assign customer contracts to Buildingstars, which then has the right to service the accounts or assign them to others. The franchisee cannot terminate a written contract without providing proper notice to Buildingstars prior to termination.
These obligations extend beyond the termination of the agreement, as the franchisee's duty to protect trade secrets and confidential information, along with non-solicitation and non-competition obligations, remain in effect. This means that even after the franchise agreement ends, the franchisee cannot actively solicit Buildingstars' customers or compete with Buildingstars in a way that violates the original agreement. Failing to meet service standards and generate excessive customer complaints can lead to Buildingstars terminating the agreement and reassigning accounts, highlighting the importance of maintaining service quality throughout the franchise term and adhering to post-termination obligations.