Does the Counselor Realty Franchise Agreement outline the franchisee's obligations regarding agents?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Policy Guidelines and all applicable laws and regulations;
- (d) be managed by you or a designated manager involved in the day-to-day operation of the Business; be staffed with qualified and trained employees and licensed real estate agents, in conformity with local, state and federal laws and regulations, who are employed or contracted solely by you, not by us. You are solely responsible for hiring and discharging employees, and setting their wages and terms of employment. You are solely responsible for entering into and terminating contracts with agents;
- (e) use only advertising programs, materials and media (including print, audio, video, website, and computer-transmitted media) that conform at all times to Counselor's brand standard and image. If Counselor determines, in its sole discretion, that any advertising materials or media do not conform to Counselor's brand standard or image, you will alter or remove such advertising materials or media, as directed in writing by Counselor. You have the option to develop your own website as part of your overall promotion strategy. Your use of our trademarks in any advertising materials, advertising media or on your website must conform at all times to the requirements set forth in the Article 4 of this Agreement. Counselor does not currently require any advertising materials, advertising media or your website to be approved by Counselor prior to you using them, but reserves the right to review and approve such advertising materials, advertising media and your website (and to require you to alter or cease using all or any portion of such advertising materials, advertising media or website it does not approve); and
- (f) comply with changes we may make to the Franchise Policy Guidelines, System and standards even if additional investment or expenditures are required.
7.2 Best Efforts, Confidentiality and No Conflicts of Interest.
- (a) You or your Business manager must furnish your personal full time and attention and best efforts to the management and operation of your Business.
- (b) During and after the term of this Agreement, you shall not disclose to a third party or use, except to operate the Business during the term of this Agreement, any confidential or proprietary information, or trade secret, that we own or disclose to you. You must require your Business manager (if any) and agents to sign a corresponding confidentiality agreement. You must return the entire Franchise Policy Guidelines to us promptly upon termination or expiration of this Agreement or any transfer.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the Franchise Agreement does outline several obligations for the franchisee regarding real estate agents. Specifically, the franchisee is responsible for staffing the business with qualified and trained employees and licensed real estate agents, ensuring they comply with all local, state, and federal laws and regulations. These agents must be employed or contracted solely by the franchisee, not by Counselor Realty. The franchisee has the sole responsibility for hiring, discharging, setting wages, and determining the terms of employment for these agents.
Furthermore, the Franchise Agreement stipulates that the franchisee must require their business manager (if any) and agents to sign a confidentiality agreement to protect Counselor Realty's confidential information and trade secrets. During the term of the agreement and for 24 months after it expires, is terminated, or is transferred, the franchisee is prohibited from soliciting agents, employees, or independent contractors of Counselor Realty or another Counselor Realty franchisee for employment or contract purposes.
Additionally, franchisees must maintain minimum sales agent requirements to maintain their exclusive territory rights. The number of agents operating out of any Additional Office locations consented to by Counselor Realty will be counted toward the total number of sales agents operating from the franchisee's office. For Extension Office locations, the franchisee must maintain a mutually agreed-upon minimum number of sales agents, including a supervising broker.
These stipulations ensure that Counselor Realty franchisees maintain control over their staff while adhering to legal and ethical standards, protecting the brand's interests, and meeting performance expectations related to agent numbers and territory rights.