factual

Can Buildingstars unilaterally reduce the scope of the non-compete covenants in Sections IX and X of the Buildingstars agreement?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 23 — RECEIPT (FDD pages 43–217)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars has the right to unilaterally reduce the scope of any covenant contained in Sections IX and X of the agreement without the franchisee's consent. This becomes effective immediately once the franchisee receives written notice. The franchisee must then comply with the covenant as modified.

This clause gives Buildingstars significant flexibility to adjust the non-compete terms during the franchise agreement. For a prospective franchisee, this means the non-compete obligations could change, potentially becoming less restrictive, which could be seen as a benefit. However, it also means Buildingstars could modify the covenant to better protect their interests as they see fit.

It's important for a potential Buildingstars franchisee to fully understand the implications of Sections IX and X, as well as this specific clause, and how it could affect their ability to operate or engage in related business activities both during and after the franchise term. Franchisees should seek legal counsel to fully understand the scope and implications of these provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.