Can Buildingstars modify the 'System' as defined in the franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, BUILDINGSTARS licenses others the right to operate a cleaning service business in accordance with the Marks and the System described below; and
WHEREAS, FRANCHISEE desires to participate in the use of the System in connection with the operation of a cleaning service business under the Marks; and
WHEREAS, FRANCHISEE understands that BUILDINGSTARS offers different levels of franchise programs, and that this franchise is under the "Technician Program";
NOW, THEREFORE, in consideration of the mutual promises and conditions contained herein, the parties agree as follows:
I. DEFINITIONS
For purposes of this Agreement, the following terms shall have the meaning as set forth below and the definitions constitute an integral part of this Agreement:
II. GRANT
- 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' "Technician Program". FRANCHISEE will operate the Business only within the metropolitan area listed in Exhibit III attached hereto ("Area"). FRANCHISEE shall not interfere with, service, or solicit Customers of BUILDINGSTARS, any of BUILDINGSTARS' Affiliates, or their franchisees, independent contractors or licensees. FRANCHISEE is not permitted to offer or perform any Specialty Work under this Technician Franchise Agreement.
- 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. 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.
If a Customer requests that FRANCHISEE render any services or sell any products that are not of the type that is normally rendered in connection with the System, FRANCHISEE must first notify BUILDINGSTARS and obtain approval from BUILDINGSTARS.
BUILDINGSTARS will not unreasonably object to FRANCHISEE'S request provided that the services do not interfere with the services that FRANCHISEE renders in connection with the franchise, the services and products are in no way associated with the Marks and System, FRANCHISEE is capable of providing the products and services in a good and workmanlike manner, and the Customer is fully apprised that the services or products are not being rendered in connection with the franchise.
BUILDINGSTARS retains the right to object to any future requests and the failure to object to any request shall not prohibit BUILDINGSTARS from objecting to any future requests.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, Buildingstars retains specific rights regarding the System. Buildingstars and its affiliates can operate, franchise, or license the System to others, even allowing similar businesses under different marks or systems anywhere, including within a franchisee's area. Buildingstars and its affiliates can also sell products and services authorized for sale by the business through any distribution channel, including wholesale, and provide management or consulting services using the System or Marks.
Furthermore, if a Buildingstars franchisee wants to offer services or products outside the normal scope of the System, they must first get approval from Buildingstars. Buildingstars states that it will not unreasonably object if the requested services do not interfere with the regular franchise services, are not associated with the Marks and System, are provided competently, and the customer understands these are separate from the franchise. However, Buildingstars retains the right to object to future requests, and not objecting to one request does not prevent them from objecting to others.
In essence, while franchisees operate under the Buildingstars System, Buildingstars maintains broad rights to use, license, and modify the System, as well as approve or deny deviations from it. This allows Buildingstars to adapt the System, but it also means franchisees must adhere to the approved System and obtain permission for any activities outside of it, which could impact their business operations.