What level of effort is Buildingstars requiring franchisees to exert in maintaining the confidentiality of trade secrets and proprietary rights?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall not, during the term of this Agreement, or after the transfer, termination or expiration, communicate or divulge to anyone, any information or knowledge concerning the products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, Customers, rates, fees and terms, databases, or such other information that gives BUILDINGSTARS' Affiliate, BUILDINGSTARS and FRANCHISEE a competitive advantage over those who do not know it, and other information or material which BUILDINGSTARS may designate as confidential, nor shall FRANCHISEE disclose or divulge in whole or in part any trade secrets or operating procedures of BUILDINGSTARS or its Affiliates, Customer lists, Customer contracts, sales and promotional information, employee lists, supplier and vendor information, information regarding real property management companies or commercial real estate owners affiliated with or related to any Customer, customer account, or any commercial real estate for which BUILDINGSTARS, its Affiliates, FRANCHISEE or any other franchisee has provided commercial cleaning services; pricing information; financial information furnished or disclosed to FRANCHISEE by BUILDINGSTARS or its Affiliates and any other information with respect to BUILDINGSTARS, unless such information is generally known and in the public domain, and except to the extent necessary to operate the Business ("Confidential Information"). FRANCHISEE will exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights during and after the term of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees must exercise the highest degree of diligence and make every effort to maintain the absolute confidentiality of all trade secrets and proprietary rights both during and after the term of the Franchise Agreement. This obligation extends to a wide range of information, including products, services, standards, procedures, techniques, sales information, profit margins, marketing procedures, expansion plans, customer details, rates, fees, terms, and databases. It also encompasses any other information Buildingstars designates as confidential, along with trade secrets, operating procedures, customer lists, contracts, sales and promotional materials, employee lists, supplier information, and data related to real property management companies or commercial real estate owners affiliated with Buildingstars' customers.
This requirement means that a Buildingstars franchisee must be extremely careful about how they handle sensitive business information. They cannot disclose any confidential information to anyone, including competitors, potential business partners, or even friends and family. The franchisee must also take steps to protect confidential information from being accessed or stolen, such as by storing it securely and limiting access to authorized personnel only. This obligation continues even after the franchise agreement ends, meaning that former franchisees must still maintain the confidentiality of Buildingstars' trade secrets and proprietary information.
Buildingstars also provides a Confidential Operations Manual to franchisees, which contains trade secrets and other confidential information. Franchisees are responsible for keeping their copy of the manual current and up-to-date and must return the manual to Buildingstars upon termination or expiration of the Franchise Agreement. Franchisees must strictly comply with the mandatory requirements outlined in the manual, as compliance is an essential part of their obligations under the Franchise Agreement. This further emphasizes the importance Buildingstars places on protecting its confidential information and trade secrets.
For a prospective Buildingstars franchisee, this stringent confidentiality requirement highlights the importance of understanding and adhering to the franchisor's policies and procedures regarding sensitive information. Failure to comply with these requirements could result in legal action and damage to the Buildingstars brand. Therefore, it is crucial for franchisees to implement robust security measures and provide adequate training to their employees to ensure the confidentiality of Buildingstars' trade secrets and proprietary rights.