Can a Buildingstars franchisee's relatives or associates be held to the same non-compete restrictions as the franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Provide or attempt to provide (or others of the opportunity to provide), directly or indirectly, any Services to any Customer for which FRANCHISEE has rendered services under this Agreement or to which FRANCHISEE has been introduced by or about which FRANCHISEE has received information by being a Buildingstars franchisee.
- b.
In the event that there is a breach of this provision, Franchisee shall pay BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid by the Customer for the Services.
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.
Contact, solicit, attempt to contact or solicit, or participate or aid with the contact or solicitation of or provide or attempt to provide (or advise others of the opportunity to provide directly or indirectly any cleaning or janitorial services to any Customer for any reason other than providing services pursuant to this Agreement, including but not limited to 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;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the non-solicitation agreement extends not only to the franchisee but also to their relatives and associates. During the term of the Franchise Agreement and for one year after its transfer, expiration, or termination, the franchisee, their relatives, and associates are restricted from providing services to Buildingstars's customers that the franchisee served or was introduced to. They are also prohibited from soliciting Buildingstars's service providers.
This means that a franchisee's family members or close business contacts are also legally bound by these restrictions. If a relative or associate violates this provision, the franchisee is responsible for paying Buildingstars a fee equal to three times the monthly amount the customer agreed to pay for services. This could create tension within families or business relationships if those individuals independently seek opportunities in the cleaning or janitorial services industry.
The restrictions are designed to protect Buildingstars's customer base and relationships with its service providers. However, the FDD also states that Buildingstars intends to restrict the franchisee's activities only to the extent necessary to protect its legitimate business interests. The agreement specifies that the franchisee is not restricted from providing janitorial/cleaning services to any entity or person that is not a Buildingstars customer. This clause aims to balance the franchisor's need to protect its business with the franchisee's ability to earn a livelihood.
Buildingstars also has the right to reduce the scope of any covenant contained in Sections IX and X, without the franchisee's consent, effective immediately upon receipt by the franchisee of written notice. This provides Buildingstars with flexibility to adjust the restrictions as needed. The franchisee acknowledges that the restrictions imposed are reasonable and their enforcement will not cause an undue burden upon the franchisee's ability to earn a livelihood.