factual

What obligation does a Buildingstars franchisee have regarding interference with the relationship between Buildingstars and its customers?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 22: CONTRACTS]

  • c.

Do or take any action to circumvent or otherwise attempt to take away or interfere with or jeopardize the business relationship between the Customer and BUILDINGSTARS.

FRANCHISEE acknowledges and agrees any interference with the Customer's business or the relationship between BUILDINGSTARS and Customers is in direct violation of this provision.

  • C.

Reasonableness of Restrictions.

BUILDINGSTARS intends to restrict the activities of the FRANCHISEE under Sections IX and X of this Agreement only to the extent necessary for the protection of BUILDINGSTARS' legitimate business interests.

For the sake of clarity, nothing herein is to restrict FRANCHISEE from providing janitorial/cleaning services to any entity or person that is not a Customer; provided however, that the foregoing shall not alter FRANCHISEE's obligations, including but not limited to Section IX above, under this Agreement.

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

In the event a court of competent jurisdiction shall determine the business, time, or geographic limitations contained in this Agreement are illegal, invalid or unenforceable, then, the court so holding shall reduce the limitation necessary to render such restriction enforceable by such court. BUILDINGSTARS shall have the right to reduce the scope of any covenant contained in Sections IX and X, without FRANCHISEE'S consent, effective immediately upon receipt by FRANCHISEE of written notice thereof; and FRANCHISEE shall comply with any covenant as so modified. In addition to any other remedies available at law or equity, BUILDINGSTARS shall have the right to injunctive relief for a violation or threatened violation of the foregoing. FRANCHISEE acknowledges that the restrictions imposed in this Section are reasonable and their enforcement will not cause an undue burden upon FRANCHISEE'S ability to earn a livelihood.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is prohibited from taking any action to circumvent, take away, interfere with, or jeopardize the business relationship between a customer and Buildingstars. The franchisee acknowledges that any interference with a customer's business or the relationship between Buildingstars and its customers is a direct violation of this provision.

This restriction is intended to protect Buildingstars' legitimate business interests. However, the agreement clarifies that franchisees are not restricted from providing janitorial/cleaning services to entities or persons who are not Buildingstars customers. This allowance does not alter the franchisee's other obligations under the agreement, including those specified in Section IX.

Buildingstars retains the right to reduce the scope of any covenant contained in Sections IX and X with written notice to the franchisee, and the franchisee must comply with any covenant as modified. Buildingstars can seek injunctive relief for any violation or threatened violation of these terms. The franchisee acknowledges that these restrictions are reasonable and will not unduly burden their ability to earn a livelihood.

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.