What non-competition covenants apply to a Buildingstars franchisee during the term of the franchise?

According to Buildingstars's 2025 Franchise Disclosure Document, non-competition covenants during the term of the franchise are addressed in Section X of the Franchise Agreement. These covenants include restrictions on solicitation, providing services to customers outside the franchise relationship, and involvement in competing businesses, with the specifics depending on the franchisee's program level.

For a prospective Buildingstars franchisee, this means that while operating their franchise, they are limited in their ability to engage in activities that could directly compete with Buildingstars. The extent of these limitations varies based on the type of franchise agreement (program level) the franchisee enters into. It is important to carefully review Section X of the Franchise Agreement to fully understand the scope of these restrictions.

These types of non-compete clauses are common in franchising to protect the brand's customer base and prevent franchisees from using the franchisor's resources and training to directly compete. Franchisees should consider how these restrictions might affect their business operations and future opportunities. Understanding these restrictions is crucial for ensuring compliance and avoiding potential breaches of the franchise agreement.