Can a Counselor Realty franchisee solicit employees of Counselor Realty during the term of the franchise?
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 Counselor Realty's 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting agents, employees, or independent contractors of Counselor Realty or any of its franchisees during the term of the franchise agreement. This restriction also extends for a period of 24 months after the franchise expires, is terminated, or is transferred.
This non-solicitation clause prevents franchisees from actively recruiting personnel associated with Counselor Realty or its other franchisees. The restriction applies within the United States and any other geographical area in which Counselor Realty operates. The clause specifically prohibits soliciting individuals who are currently, or were within the previous six months, an agent, employee, or independent contractor of Counselor Realty or another Counselor Realty franchisee.
For a prospective Counselor Realty franchisee, this means they cannot attempt to hire or contract with current or recent personnel from Counselor Realty or other franchise locations, either for their own business or to induce them to leave their current positions. This restriction is in place to protect the stability of Counselor Realty's network and prevent franchisees from poaching talent from each other or the parent company. Violating this clause could lead to legal repercussions or termination of the franchise agreement.
This type of non-solicitation agreement is common in franchising to protect the franchisor's and franchisees' investment in training and developing their workforce. It aims to maintain a level playing field and prevent unfair competition within the franchise system. Franchisees should be aware of these restrictions and ensure they do not engage in any activities that could be construed as solicitation.