Can a Counselor Realty franchisee solicit agents of other Counselor Realty franchisees after termination?
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 Franchise Disclosure Document, a franchisee is restricted from soliciting agents, employees, or independent contractors of Counselor Realty or its franchisees for a period of time after the franchise agreement is terminated or expires. Specifically, for 24 months after the termination, expiration, or transfer of the agreement, a 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 former franchisees from actively recruiting agents away from the Counselor Realty system. The restriction is in place to protect Counselor Realty's agent network and the investment of other franchisees. It aims to maintain stability within the Counselor Realty system by preventing franchisees from leveraging their knowledge of the network to unfairly compete immediately after leaving the system.
This restriction applies to hiring or contracting such individuals to work for the former franchisee or any other party, or for inducing them to leave their employment or contract with Counselor Realty or another Counselor Realty franchisee. This means a franchisee cannot actively try to recruit agents from the Counselor Realty network to join a competing brokerage or any other business venture they might pursue after leaving the franchise. The restriction extends for 24 months, providing a buffer period to protect the Counselor Realty network from immediate disruption caused by departing franchisees.
It is important to note that this restriction is in place to protect the Counselor Realty network and maintain stability within the system. Prospective franchisees should carefully consider the implications of this non-solicitation clause, especially if they have plans to operate a competing real estate business after the franchise agreement ends. Understanding the scope and duration of this restriction is crucial for making an informed decision about investing in a Counselor Realty franchise.