Under what circumstances is a Buildingstars franchisee required to pay Buildingstars a Customer Development Fee?

According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee may be required to pay a Customer Development Fee under specific circumstances related to performing services outside the franchise agreement.

Specifically, if during the term of the agreement, or even within one year after the termination, expiration, or transfer of the agreement, a Buildingstars franchisee (or any employee or affiliate of the franchisee) performs services for a customer that are similar to those covered by the franchise agreement, but does so outside the scope of the agreement, then the franchisee must pay Buildingstars a Customer Development Fee.

The Customer Development Fee is calculated as three times the monthly amount agreed to be paid to the franchisee (or their employee or affiliate) for those services performed outside the agreement. This provision appears designed to prevent franchisees from diverting business away from the Buildingstars franchise system, both during the agreement term and for a limited time afterward. It is important for prospective franchisees to understand this obligation, as it could significantly impact their revenue if they engage in similar services independently.