In which metropolitan areas can a Buildingstars franchisee operate?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Area. Subject to the terms and conditions of this Agreement, BUILDINGSTARS hereby grants to FRANCHISEE the nonexclusive right and license to use the System and Marks in connection with the operation of the Business under BUILDINGSTARS' "On-Site Manager Program". FRANCHISEE will operate the Business only within the metropolitan area listed in Exhibit I attached hereto ("Area"). FRANCHISEE shall not interfere with, service, or solicit Customers of BUILDINGSTARS, any of BUILDINGSTARS' Affiliates, or their franchisees, licensees, or independent contractors.
- B. Rights Reserved by BUILDINGSTARS and Affiliates. BUILDINGSTARS and its Affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses using the System and/or Marks anywhere, including within and outside of the Area. BUILDINGSTARS, its Affiliates and other franchisees and licensees are also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. BUILDINGSTARS and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
Source: Item 12 — TERRITORY (FDD pages 26–27)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee can operate their business only within the metropolitan area listed in Exhibit I of the Franchise Agreement. Buildingstars grants the franchisee a nonexclusive right and license to use their system and marks within this designated area, specifically for the "On-Site Manager Program."
However, Buildingstars retains the right to operate, franchise, or license businesses using their system and marks anywhere, including within the franchisee's designated area. Buildingstars, its affiliates, and other franchisees and licensees can also operate similar businesses under different marks or systems, both inside and outside the franchisee's area. This means that while a franchisee has a designated area, Buildingstars can still operate or allow others to operate similar businesses nearby.
Furthermore, Buildingstars and its affiliates can sell products and services authorized for the business through any distribution channel, including wholesale sales, and provide management or consulting services using the system and marks. This broad reservation of rights by Buildingstars could potentially create competition for the franchisee within their own area. A prospective franchisee should carefully review Exhibit I of the Franchise Agreement to understand the specific boundaries of their operating area and consider the potential for competition from Buildingstars and its other franchisees or affiliates.