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

According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee who violates the non-solicitation agreement by providing services to a customer must pay a fee to Buildingstars. This fee is calculated as three times the monthly amount that the customer agreed to pay for the services. This provision applies if the franchisee provides services to a customer for whom the franchisee had previously rendered services under the Franchise Agreement or to whom the franchisee was introduced or received information about through their affiliation with Buildingstars.

This non-solicitation clause 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 restriction prevents franchisees from leveraging their Buildingstars connections and knowledge to unfairly compete with the franchisor or other franchisees after their relationship with Buildingstars ends.

For a prospective Buildingstars franchisee, this means that violating the non-solicitation agreement can result in a significant financial penalty. The fee is based on the customer's monthly service agreement, so higher-value customer accounts will result in a larger penalty if the franchisee breaches the agreement. Franchisees should be aware of these restrictions and ensure they understand the terms of the non-solicitation clause to avoid potential penalties.