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Does Buildingstars require restrictive covenant agreements from employees?

Buildingstars Franchise · 2025 FDD

Answer 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 address trade secrets and non-competition, and may also include restrictive covenants or non-competition agreements.

This requirement ensures that Buildingstars's confidential information and business practices are protected, even at the employee level of each franchise. By mandating these agreements, Buildingstars aims to maintain consistency and prevent the leakage of sensitive information that could harm the brand or its franchisees.

For a prospective Buildingstars franchisee, this means they will need to incorporate these agreements into their hiring process. They will need to ensure that all employees sign the required documents and understand their obligations. The franchisee should obtain the standard form from Buildingstars to ensure compliance. It is also important for the franchisee to understand the specific terms and enforceability of these agreements within their local jurisdiction, as laws regarding non-disclosure and non-competition can vary.

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.