Does Buildingstars require franchisees to have their employees execute a non-disclosure agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
You must require all of your employees to execute a non-disclosure agreement in the form acceptable to BUILDINGSTARS relating to trade secrets and non-competition and possibly restrictive covenant and/or non-competition agreements.
Source: Item 15 — OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS (FDD pages 28–29)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are required to have their employees sign a non-disclosure agreement. This agreement must be in a form that is acceptable to Buildingstars. The agreement should relate to trade secrets and non-competition, and may also include restrictive covenants and/or non-competition agreements.
This requirement ensures that Buildingstars' confidential information and trade secrets are protected, even at the employee level of the franchise. By mandating these agreements, Buildingstars aims to maintain a consistent standard of confidentiality across all franchise locations and prevent sensitive information from being leaked to competitors.
For a prospective Buildingstars franchisee, this means they will need to incorporate the non-disclosure agreement into their hiring process. They will need to ensure that all employees sign the agreement, and that the form used is approved by Buildingstars. Failure to comply with this requirement could potentially lead to breaches of the franchise agreement and potential legal repercussions.