factual

Are the non-compete covenants in the Buildingstars agreement considered severable and independent?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

The foregoing covenants shall be construed as severable and independent and shall be interpreted and applied consistent with the requirements of reasonableness and equity.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, the non-compete covenants within the agreement are designed to be severable and independent. This means that if a court finds any part of the non-compete agreement to be unenforceable, the rest of the agreement will still remain in effect. This is a common practice in franchising to protect the franchisor's interests as much as possible.

Buildingstars states that it intends to restrict franchisees' activities only to the extent necessary to protect its legitimate business interests. The agreement specifies that franchisees are not restricted from providing janitorial/cleaning services to entities or persons who are not Buildingstars customers. However, this does not alter the franchisee's other obligations under the agreement, including those in Section IX.

Furthermore, if a court determines that the business, time, or geographic limitations are illegal, invalid, or unenforceable, the court has the authority to reduce the limitation to render it enforceable. Buildingstars also retains the right to reduce the scope of any covenant in Sections IX and X immediately upon written notice to the franchisee, who must then comply with the modified covenant. Buildingstars can seek injunctive relief for any violation or threatened violation of these covenants. This demonstrates Buildingstars's commitment to ensuring the enforceability of these restrictions while also allowing for adjustments to maintain reasonableness and equity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.