Can a Counselor Realty franchisee solicit independent contractors 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.
Specifically, during the term of the agreement and the 24-month period after, a Counselor Realty franchisee is prohibited from soliciting 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 includes soliciting for the purpose of hiring or contracting such person or entity to work for the franchisee or any other party, or for the purpose of inducing them to leave their employment or contract with Counselor Realty or another Counselor Realty franchisee.
This non-solicitation clause is broad, covering any geographical area in which Counselor Realty operates within the United States. This restriction aims to protect Counselor Realty and its franchisees from losing agents, employees, or independent contractors to other franchisees or competing businesses, ensuring stability and preventing the disruption of established business operations.