Under the Buildingstars agreement, what constitutes a direct violation of the non-solicitation provision?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- c.
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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee directly violates the non-solicitation provision if they interfere with the business relationship between a customer and Buildingstars. The franchisee acknowledges that any such interference constitutes a direct violation of this provision.
This means a Buildingstars franchisee is prohibited from taking actions that could jeopardize Buildingstars' relationship with its customers. This restriction is in place to protect Buildingstars' customer base and revenue streams. It prevents franchisees from leveraging their access to customers gained through the franchise agreement to unfairly compete with Buildingstars.
However, the FDD clarifies that franchisees are not restricted from providing janitorial/cleaning services to any entity or person that is not a Buildingstars customer. This allows franchisees to pursue business opportunities outside of the Buildingstars network, as long as it does not conflict with their obligations under the non-solicitation agreement. Prospective franchisees should carefully consider these restrictions and how they might impact their business operations and growth strategies.