What are the Buildingstars restrictions on the franchisee's business location (Item 12) and how does this relate to the assistance provided by the franchisor (Item 11)?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
What This Means (2025 FDD)
Based on the 2025 Buildingstars Franchise Disclosure Document, franchisees face certain restrictions aimed at protecting Buildingstars' business interests and customer relationships. Specifically, franchisees are prohibited from taking actions that could undermine the relationship between Buildingstars and its customers. This includes refraining from interfering with customer business or the relationships Buildingstars has established.
Buildingstars emphasizes that these restrictions on franchisee activities, as outlined in Sections IX and X of the franchise agreement, are designed to be only as limiting as necessary to safeguard Buildingstars' legitimate business interests. The agreement clarifies that franchisees are not restricted from offering janitorial or cleaning services to entities or individuals who are not existing Buildingstars customers. However, this allowance does not negate the franchisee's other obligations under the agreement, particularly those detailed in Section IX.
These restrictions are considered reasonable, with franchisees acknowledging that their enforcement will not unduly burden their ability to earn a livelihood. Furthermore, Buildingstars retains the right to modify the scope of these restrictions, providing written notice to the franchisee, who must then comply with the adjusted terms. The document also specifies that Buildingstars is entitled to seek injunctive relief to prevent any violations of these restrictions, highlighting the importance of adhering to these terms for maintaining a good standing with the franchise.
Regarding Item 11, the FDD excerpts provided do not contain information about the specific assistance Buildingstars provides to franchisees. Therefore, it is not possible to directly link the location restrictions to the franchisor's assistance based on the given information. A prospective franchisee should inquire about the specific support and resources Buildingstars offers in relation to site selection, territory management, and customer acquisition to understand how the franchisor assists in navigating these location-based restrictions.