Does Buildingstars require non-competition agreements from employees?
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' 2025 Franchise Disclosure Document, franchisees must require their employees to sign certain agreements. Specifically, Buildingstars requires franchisees to have their employees execute a non-disclosure agreement relating to trade secrets.
Additionally, Buildingstars requires franchisees to have their employees execute non-competition agreements. These agreements must be in a form acceptable to Buildingstars.
This requirement ensures that Buildingstars' confidential information and competitive advantages are protected not only by the franchisee but also by everyone working within the Buildingstars franchise system. Prospective franchisees should review the standard form agreements to understand the scope and enforceability of these provisions in their specific jurisdiction.