Can a Counselor Realty franchisee solicit agents of Counselor Realty's franchisees after the franchise is terminated?
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to the 2025 Counselor Realty FDD, a franchisee is restricted from soliciting agents, employees, or independent contractors of Counselor Realty or its other franchisees for a period of time after the franchise agreement is terminated. Specifically, for 24 months after the franchise expires, is terminated, or is transferred, the franchisee cannot solicit or cause the solicitation of 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 applies within the United States and any other geographical area in which Counselor Realty operates.
This non-solicitation clause prevents a former franchisee from actively recruiting agents away from the Counselor Realty system to their new business or another competing business. The clause aims to protect Counselor Realty's network and the investment of its franchisees by preventing the destabilization that could occur if agents were freely poached by former franchisees.
For a prospective Counselor Realty franchisee, this means that upon exiting the franchise system, they will not be able to recruit agents from the Counselor Realty network for two years. This could impact their ability to quickly establish a new real estate business if their strategy relies on recruiting experienced agents from the Counselor Realty system. It is important to note that this restriction applies to both employees and independent contractors, broadening the scope of the non-solicitation agreement.