For how long after the termination of the Buildingstars Franchise Agreement is the franchisee prohibited from engaging in a cleaning or janitorial business?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
X. NON-COMPETITION AND NON-SOLICITATION
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 service or janitorial business within the Area or within any 10 mile area where Buildingstars or any of its affiliates, franchisees, or licensees operate.
This restriction has significant implications for a franchisee who decides to leave the Buildingstars system. It limits their ability to immediately start or join a competing business in the same geographic area. The franchisee must consider this limitation when planning their exit strategy, as it could impact their income and career options for two years following the termination of the agreement.
The non-compete agreement is designed to protect Buildingstars's market share and prevent franchisees from using the knowledge and experience gained within the Buildingstars system to directly compete against it. Franchisees should carefully evaluate the scope and enforceability of this clause, as non-compete agreements can vary in their interpretation and enforcement depending on local laws and regulations. It is advisable to seek legal counsel to fully understand the implications of this restriction before entering into the Franchise Agreement.
It is important to note that this non-compete agreement applies not only to the franchisee but also to any corporations, partnerships, trusts, associations, joint ventures, limited liability companies, or other entities through which the franchisee might operate. This broad application ensures that the franchisee cannot circumvent the non-compete clause by operating under a different business structure.