On what page of the Buildingstars Franchise Agreement can I find information regarding non-competition and non-solicitation?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
X. NON-COMPETITION AND NON-SOLICITATION
A. Non-Competition. During the term of this Agreement and for a period of two (2) years after the expiration, Transfer or termination of this Agreement for any reason, FRANCHISEE will not directly or indirectly, by itself or through corporations, partnerships, trusts, associations, joint ventures, limited liability companies, or other entities or otherwise perform any services for, engage in or acquire,
be an employee of, have any financial interest in, loan money to, or have any interest based on profits or revenues of, any cleaning service business or janitorial business within the Area or within any 10 mile
area where BUILDINGSTARS or any Affiliate, franchisee or licensee of BUILDINGSTARS is operating.
B. Non-Solicitation.
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Provide or attempt to provide (or others of the opportunity to provide), directly or indirectly, any Services to any Customer for which FRANCHISEE has rendered services under this Agreement or to which FRANCHISEE has been introduced by or about which FRANCHISEE has received information by being a Buildingstars franchisee.
- b.
In the event that there is a breach of this provision, Franchisee shall pay BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid by the Customer for the Services.
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Contact, solicit, attempt to contact or solicit, or participate or aid with the contact or solicitation of or provide or attempt to provide (or advise others of the opportunity to provide directly or indirectly any cleaning or janitorial services to any Customer for any reason other than providing services pursuant to this Agreement, including but not limited to notifying any Customer of FRANCHISEE'S new affiliation or employment;
- b.
Contact or solicit, attempt to contact or solicit, or participate or aid in the contact or solicitation of, any Service Provider for the purpose of inducing or encouraging him, her or it to terminate or materially alter their employment, engagement, franchise relationship or other business relationship with BUILDINGSTARS, any Affiliate, or other franchisee;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, information regarding non-competition and non-solicitation can be found in Item 22, CONTRACTS, specifically under section X, titled "NON-COMPETITION AND NON-SOLICITATION". This section outlines the terms and conditions related to both non-competition and non-solicitation agreements that a franchisee must adhere to during the term of the Franchise Agreement and after its expiration, transfer, or termination.
The non-competition clause specifies that for two years after the agreement ends, a Buildingstars franchisee cannot engage in any cleaning or janitorial business within their designated area or within a 10-mile radius of any Buildingstars location. This restriction includes direct or indirect involvement through various business entities or as an employee or financial stakeholder.
The non-solicitation clause restricts a Buildingstars franchisee from providing services to or soliciting Buildingstars customers or service providers during the agreement term and for one year afterward. If a franchisee breaches the non-solicitation provision by providing services to a customer, they must pay Buildingstars a fee equal to three times the customer's monthly service amount. These measures are in place to protect Buildingstars's customer base, service provider relationships, and overall market position.