What is the geographic scope of the non-compete clause for Buildingstars franchisees?

According to Buildingstars's 2025 Franchise Disclosure Document, the geographic scope of the non-compete clause extends to any area where Buildingstars, its affiliates, franchisees, or licensees are operating. This means that a franchisee is restricted from competing within the areas where the Buildingstars brand has a presence.

Specifically, the non-compete restricts a franchisee from providing services to any customer they served or were introduced to through Buildingstars. It also prevents them from soliciting Buildingstars' service providers. This restriction applies not only during the term of the franchise agreement but also for one year after the agreement's transfer, expiration, or termination. The clause is triggered as well by a court order enforcing the covenant, whichever event occurs later.

Buildingstars states that it intends to limit franchisee activities only to the extent necessary to protect its legitimate business interests. The agreement clarifies that franchisees are not restricted from offering janitorial/cleaning services to entities or individuals who are not Buildingstars customers, provided they adhere to their other obligations under the agreement. The agreement also states that if a court finds any of the restrictions too broad, it can modify them to make them enforceable.

This non-compete agreement is assignable by Buildingstars and will benefit Buildingstars and its successors. In the event of a sale, merger, or change in ownership, the new entity will assume Buildingstars's position without needing additional consent or notice to the franchisee. Prospective franchisees should carefully consider these restrictions and how they might impact their business opportunities after leaving the Buildingstars system.