For how long after the Buildingstars franchise agreement expires or terminates is the franchisee prohibited from engaging in a cleaning or janitorial business?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Non-Competition. During the term of this Agreement and for a period of two (2) years after the expiration, Transfer or termination of this Agreement for any reason, FRANCHISEE will not directly or indirectly, by itself or through corporations, partnerships, trusts, associations, joint ventures, limited liability companies, or other entities or otherwise perform any services for, engage in or acquire, be an employee of, have any financial interest in, loan money to, or have any interest based on profits or revenues of, any cleaning service business or janitorial business within the Area or within any 10 mile area where BUILDINGSTARS or any Affiliate, franchisee or licensee of BUILDINGSTARS is operating.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in a cleaning or janitorial business for a period of two years after the expiration, transfer, or termination of the franchise agreement. This non-compete clause prevents the franchisee from directly or indirectly performing services for, engaging in, or having a financial interest in any cleaning or janitorial business within the designated area. The area includes the franchisee's territory or any area within a 10-mile radius where Buildingstars, its affiliates, franchisees, or licensees operate.
This restriction applies regardless of the reason for termination, whether it's due to expiration, transfer, or any other cause. The franchisee is prohibited from involvement either directly or indirectly through various business structures such as corporations, partnerships, trusts, or joint ventures. This broad definition aims to prevent franchisees from circumventing the non-compete agreement through alternative business arrangements.
The non-compete agreement is a standard practice in franchising to protect the franchisor's business model, customer base, and competitive advantage. Prospective Buildingstars franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the cleaning or janitorial industry after leaving the Buildingstars system. It is important to understand the geographic scope and the types of activities that are prohibited to avoid potential legal issues.