What is the time period after the Buildingstars agreement's termination during which the non-solicitation clause applies?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Provide or attempt to provide (or others of the opportunity to provide), directly or indirectly, any Services to any Customer for which FRANCHISEE has rendered services under this Agreement or to which FRANCHISEE has been introduced by or about which FRANCHISEE has received information by being a Buildingstars franchisee.
- b.
In the event that there is a breach of this provision, Franchisee shall pay BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid by the Customer for the Services.
FRANCHISEE agrees that during the term of this Agreement and for one (1) year after the Transfer, expiration or termination for any reason of this Agreement or the entry of a final order of a court of competent jurisdiction enforcing this covenant, whichever is later, FRANCHISEE and any of its relatives, or associates, shall not, directly or indirectly, for FRANCHISEE or for any other person or entity (except BUILDINGSTARS):
- a.
Contact, solicit, attempt to contact or solicit, or participate or aid with the contact or solicitation of or provide or attempt to provide (or advise others of the opportunity to provide directly or indirectly any cleaning or janitorial services to any Customer for any reason other than providing services pursuant to this Agreement, including but not limited to notifying any Customer of FRANCHISEE'S new affiliation or employment;
- b.
Contact or solicit, attempt to contact or solicit, or participate or aid in the contact or solicitation of, any Service Provider for the purpose of inducing or encouraging him, her or it to terminate or materially alter their employment, engagement, franchise relationship or other business relationship with BUILDINGSTARS, any Affiliate, or other franchisee;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the non-solicitation clause extends for one year after the transfer, expiration, or termination of the franchise agreement. This restriction also applies for one year after the entry of a final order of a court enforcing this covenant, whichever event occurs later. This means that even after the franchise agreement ends, a franchisee is restricted from soliciting Buildingstars's customers or service providers.
Specifically, the franchisee (and their relatives or associates) cannot directly or indirectly provide services to any customer they served while under the Buildingstars agreement. They are also prohibited from contacting or soliciting Buildingstars's service providers to try and get them to terminate or alter their relationship with Buildingstars.
If a Buildingstars franchisee violates the non-solicitation clause by providing services to a restricted customer, they must pay Buildingstars a fee. This fee is calculated as three times the monthly amount that the customer agreed to pay for the services. This penalty underscores the importance of adhering to the non-solicitation agreement to protect Buildingstars's business interests.