Can a Counselor Realty franchisee use confidential information after the agreement terminates?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
on 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.
- (c) During the term of this Agreement, you will not own any interest in, or work for, engage in or assist, directly or indirectly, any real estate brokerage service business other than Counselor, or that competes with Counselor, at or within 50 miles of the Office (or any Additional Office or Extension Office) without Counselor's prior written approval.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, franchisees are restricted from using confidential information after the termination of the franchise agreement. Specifically, the franchisee cannot disclose to a third party or use any confidential or proprietary information or trade secrets that Counselor Realty owns or discloses to them, except to operate the business during the term of the agreement.
Upon termination or expiration of the Franchise Agreement, all rights licensed to the franchisee automatically revert to Counselor Realty. The franchisee must immediately stop using the Marks and System, including any materials depicting them, and any similar names or marks, including domain names. The franchisee is also obligated to return the Franchise Policy Guidelines and all other confidential or trade secret information to Counselor Realty and cease using any distinctive, proprietary, or confidential items, methods, or know-how that Counselor Realty disclosed to them.
Counselor Realty or its affiliate has the right to access and remove any confidential or proprietary information and materials, either at the Office (including any Additional Office and Extension Office) or remotely by electronic means. These restrictions are typical in franchise agreements to protect the franchisor's intellectual property and trade secrets.