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What are the Buildingstars franchisee's obligations regarding post-termination activities (Item 9) and what sections of the Franchise Agreement (Item 17) cover this?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

Obligation Section in Franchise Agreements Disclosure Document Item
(v) Post-termination obligations Sections XI.C Item 17

What This Means (2025 FDD)

According to the 2025 Buildingstars Franchise Disclosure Document, a franchisee's post-termination obligations are detailed in Section XI.C of the Franchise Agreement, as referenced in Item 17. Upon termination or expiration of the agreement, all rights granted to the franchisee are terminated.

Following termination, the franchisee must immediately stop using all Buildingstars trademarks, signs, colors, structures, printed materials, and advertising. They must also return any copyrighted materials provided by Buildingstars and, if requested, assign their telephone numbers to Buildingstars and execute necessary documents for the transfer. The franchisee is also obligated to pay all outstanding amounts owed to Buildingstars, its affiliates, and suppliers.

Furthermore, the franchisee must return all materials containing confidential information, including the Confidential Operations Manual, to Buildingstars immediately. The obligations concerning trade secrets, confidential information, non-solicitation, and non-competition remain in effect even after termination. The franchisee must immediately cease providing services to all customers and forfeits all rights to customer accounts. Upon Buildingstars' request, the franchisee will assign customer contracts to Buildingstars, which can then service the accounts or assign them to others. The franchisee cannot terminate any written contract without providing proper notice to Buildingstars beforehand.

These post-termination obligations are designed to protect Buildingstars' brand, customer relationships, and confidential information. Prospective franchisees should carefully review Section XI.C of the Franchise Agreement to fully understand their responsibilities upon termination or expiration of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.