Which Disclosure Document item covers non-competition and non-solicitation covenants for Counselor Realty franchisees?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
NT.
| Obligation | Section in Franchise Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and | Section 1.2 | Items 1, 7, 11, 12 |
| acquisition/lease | ||
| b. Pre-opening | Sections 1.2 and 7.1 | Items 1, 7, 8 |
| purchases/leases | ||
| c. |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Item 17 covers post-termination obligations, including non-competition and non-solicitation covenants. The table provided in Item 11 cross-references various obligations outlined in the Franchise Agreement with the corresponding items in the Disclosure Document.
Specifically, the table indicates that non-competition and non-solicitation covenants are addressed in Section 7.2 and Article 12 of the Franchise Agreement. These sections are further detailed in Item 17 of the Disclosure Document. This means that prospective franchisees can find information regarding restrictions on their ability to compete with Counselor Realty or solicit its clients or employees after the franchise agreement terminates within Item 17.
For a prospective Counselor Realty franchisee, this information is crucial for understanding the limitations they will face both during and after the franchise term. Non-competition and non-solicitation clauses can significantly impact a franchisee's future business opportunities, so it is essential to carefully review Item 17 and seek legal counsel to fully understand the implications of these covenants.