What is the definition of 'solicit' in the context of the Counselor Realty non-solicitation agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) During the term of this Agreement and for a period of twenty-four (24) months after it expires, is terminated or is transferred, you will not alone, or in any capacity
with another person or entity, within the United States and any other geographical area in which Counselor operates, solicit or cause to be solicited any person or entity that is (or was within the previous six (6) months) an agent, employee or independent contractor of Counselor or another Counselor franchisee, for the purpose of hiring or contracting such person or entity to work for you or any other party, or for the purpose of inducing them to leave such party's employment or contract with Counselor or another Counselor franchisee.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the term 'solicit' in the non-solicitation agreement means that during the term of the Franchise Agreement and for 24 months after the agreement expires, is terminated, or is transferred, the franchisee cannot, alone or with another person or entity, within the United States and any other geographical area in which Counselor Realty operates, solicit or cause to be solicited any person or entity that is (or was within the previous six months) an agent, employee, or independent contractor of Counselor Realty or another Counselor Realty franchisee.
This restriction specifically prohibits franchisees from attempting to hire or contract with these individuals to work for them or any other party. It also prevents franchisees from inducing these individuals to leave their employment or contract with Counselor Realty or another Counselor Realty franchisee. This clause is designed to protect Counselor Realty's workforce and prevent franchisees from poaching employees or contractors from the franchisor or other franchisees within the system.
For a prospective Counselor Realty franchisee, this means that after the franchise agreement ends, they are restricted from recruiting agents, employees, or independent contractors from Counselor Realty or other franchisees for a period of two years. This could limit their ability to quickly build a team if they were to start a competing business or another real estate venture after leaving the Counselor Realty system. It is important to understand the scope and limitations of this non-solicitation agreement before entering into a franchise agreement with Counselor Realty.