If a Buildingstars franchisee breaches the non-solicitation provision by providing services to a customer, what fee must they pay Buildingstars?

According to Buildingstars's 2025 Franchise Disclosure Document, if a franchisee breaches the non-solicitation provision by providing services to a customer, they must pay Buildingstars a fee. This fee is calculated as three times the monthly amount that the customer agreed to pay for the services. This provision is in effect during the term of the Franchise Agreement and for one year after the agreement's transfer, expiration, or termination. It also applies for one year after a court order enforcing this covenant.

This non-solicitation clause prevents a franchisee from taking Buildingstars customers for their own benefit, either directly or indirectly, during the franchise term and for a year afterward. This restriction applies to the franchisee, their relatives, and associates. The fee serves as a deterrent and compensation to Buildingstars for the lost revenue and potential damage to their business relationships.

For a prospective Buildingstars franchisee, this means that violating the non-solicitation agreement can result in a significant financial penalty. It is crucial to understand the scope and duration of this restriction to avoid inadvertently breaching the agreement. Franchisees should be careful about providing services to any customer they encountered through their Buildingstars franchise, even after the franchise agreement ends, as they could be liable for a substantial fee. This is a fairly standard clause in franchise agreements across many industries.