What specific actions are Buildingstars franchisees prohibited from taking to interfere with the relationship between Buildingstars and its customers?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Do or take any action to circumvent or otherwise attempt to take away or interfere with or jeopardize the business relationship between the Customer and BUILDINGSTARS. FRANCHISEE acknowledges and agrees any interference with the Customer's business or the relationship between BUILDINGSTARS and Customers is in direct violation of this provision.
- C. Reasonableness of the Restriction. 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.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are prohibited from certain actions that could interfere with Buildingstars's customer relationships. Specifically, franchisees cannot take actions to circumvent, take away, interfere with, or jeopardize the business relationship between a customer and Buildingstars. The FDD emphasizes that any interference with a customer's business or the relationship between Buildingstars and its customers is a direct violation of the franchise agreement.
This restriction is intended to protect Buildingstars's legitimate business interests. However, the agreement clarifies that franchisees are not restricted from providing janitorial/cleaning services to entities or persons who are not Buildingstars customers. This provision ensures that franchisees can still operate independently and offer services outside of the Buildingstars network, as long as it doesn't conflict with their obligations under the franchise agreement.
The agreement also addresses scenarios where a customer requests services or products from a franchisee that are not typically part of the Buildingstars system. In such cases, the franchisee must notify Buildingstars and obtain approval before fulfilling the request. Buildingstars will generally approve the request if the services do not interfere with the franchise services, are not associated with Buildingstars's marks and system, the franchisee is capable of providing the services professionally, and the customer is informed that these services are not part of the Buildingstars franchise. This ensures that franchisees can explore additional revenue streams while maintaining the integrity of the Buildingstars brand and service offerings.
Buildingstars retains the right to discontinue a franchisee's service to a customer account if it determines the franchisee is not adequately servicing the account. Factors considered include customer complaints, unresponsiveness, allegations of theft or breakage, and failure to complete jobs professionally. If Buildingstars discontinues a customer account, it is not obligated to replace it, which could impact the franchisee's revenue. This provision highlights the importance of maintaining high service standards and responsiveness to both customers and Buildingstars to avoid losing accounts.