Under the Buildingstars franchise agreement, what constitutes a 'Customer'?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
I. DEFINITIONS
For purposes of this Agreement, the following terms shall have the meaning as set forth below and the definitions constitute an integral part of this Agreement:
- A. "Affiliate" means any and all entities that are or may control, be controlled by, or under common ownership with BUILDINGSTARS including but not limited to Buildingstars, Inc. f/k/a Advantage Building Services, Inc.), Buildingstars Operations, Inc. (f/k/a Buildingstars STL Operations, Inc.), Buildingstars International, Inc., Green Sky Franchise Group, Inc., Facility Brands, Inc. and Green Sky Southwest, Inc.
- B. "Business" means the cleaning business that FRANCHISEE will operate under this Agreement using the System and Marks.
- C. "Customer" means any existing customers or prospective customers (of BUILDINGSTARS, its Affiliates, FRANCHISEE, or any other franchisee) with whom FRANCHISEE or its employees or agents have had direct or indirect contact or about whom FRANCHISEE or its employees or agents have learned information by virtue of: (1) communications with BUILDINGSTARS, its Affiliates or other BUILDINGSTARS franchisees; (2) the operation of the Business; or (3) the transfer or termination of this Agreement, and in addition, "Customer" shall include any affiliate, successor in interest, subsidiary, sibling company, or parent company of any such customer or prospective customer.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a 'Customer' is defined broadly to include both existing and prospective customers of Buildingstars, its affiliates, the franchisee, or any other franchisee within the Buildingstars system. This definition extends to any entity with whom the franchisee or their representatives have had direct or indirect contact, or about whom they have gained information through various channels. These channels include communications with Buildingstars, its affiliates, or other Buildingstars franchisees, the operation of the franchisee's business, or the transfer or termination of the franchise agreement.
This definition also encompasses affiliates, successors in interest, subsidiaries, sibling companies, or parent companies of any such customer or prospective customer. This expansive definition ensures that Buildingstars maintains a broad scope of customer relationships, which can impact the franchisee's ability to solicit or provide services to these entities, particularly after the termination of the franchise agreement.
For a prospective Buildingstars franchisee, this definition is crucial because it outlines the scope of potential customers they are connected to through the Buildingstars network. It also has implications for non-solicitation agreements, potentially restricting the franchisee's ability to engage with a wide range of entities even after their franchise agreement ends. Understanding this definition is essential for assessing the opportunities and limitations associated with a Buildingstars franchise.