What are the Buildingstars franchisee's obligations regarding non-competition (Item 9) and what are the consequences outlined in Item 15 and Item 17?

According to Buildingstars' 2025 Franchise Disclosure Document, franchisees have obligations regarding non-competition and non-solicitation that remain in effect even after the termination of the Franchise Agreement. Specifically, the franchisee's obligations regarding Trade Secrets and Confidential Information and Non-Solicitation and Non-Competition shall remain in full force and effect in accordance with their terms, notwithstanding such termination. This means that even after the franchise relationship ends, the franchisee must continue to protect Buildingstars' confidential information and refrain from soliciting Buildingstars' customers or competing with Buildingstars. The specifics of these obligations would be detailed in the Franchise Agreement and related documents.

Item 15 outlines that Buildingstars requires the franchisee to participate directly in the operation and management of their business. If the franchisee is a corporation, partnership, or limited liability company, the Principal Owner is required to use his or her best efforts in the operation of the Business. Principal Owners must satisfactorily complete Buildingstars' Initial Training Program and must agree to maintain the confidentiality of Buildingstars' confidential information and trade secrets. The franchisee must require all of their employees to execute a non-disclosure agreement in the form acceptable to Buildingstars relating to trade secrets and non-competition and possibly restrictive covenant and/or non-competition agreements. If the franchisee is a corporation or limited liability company, all shareholders or members and their spouses of a corporate franchise or limited liability company franchise will sign Buildingstars' standard form Guarantee, which is attached to the Franchise Agreement. This Guarantee provides that each individual who signs is assuming and agreeing to discharge all obligations of the "Franchisee" under the Franchise Agreement.

Item 17 is not provided in the excerpts. However, Item 22 discusses consequences of termination. Upon termination or expiration of the Agreement, all of the franchisee's rights terminate. The franchisee must immediately discontinue use of all Marks, signs, colors, structures, printed goods and forms of advertising indicative of Buildingstars' business and return any copyrighted materials. The franchisee must also pay all amounts due to Buildingstars, Buildingstars' Affiliates, and suppliers. The franchisee must return any and all materials which contain Confidential Information, including but not limited to the Confidential Operation Manual, to Buildingstars immediately. The franchisee will immediately cease providing services to all Customers and forfeit all rights it has to the customer accounts. Upon request of Buildingstars, the franchisee will assign to Buildingstars any or all of franchisee's customer contracts and Buildingstars will have the right to either service the accounts or assign the servicing of the accounts to others. The franchisee will not terminate a written contract until proper notice has been given to Buildingstars prior to termination.

In the event of any breach or threatened breach of the Agreement by any party, the other party shall immediately be entitled to injunctive relief, in addition to any other remedies available to it, (including a temporary restraining order, preliminary injunction and specific performance) without showing or proving any actual damage sustained and shall not thereby be deemed to have elected its only remedy to the exclusion of others. If Buildingstars seeks injunctive relief, it shall not be required to post a bond. All covenants contained in the Agreement, including but not limited to those relating to non-solicitation and non-competition shall be interpreted and applied consistent with the requirements of reasonableness and equity.