Must a Counselor Realty franchisee's business manager sign a confidentiality agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if a franchisee employs a business manager, that manager must sign a confidentiality agreement. This requirement ensures that the business manager is legally bound to protect Counselor Realty's confidential information and trade secrets. This obligation extends both during the term of the Franchise Agreement and after its termination.
The confidentiality agreement required by Counselor Realty aims to prevent the unauthorized disclosure or use of sensitive information that could harm the franchisor or other franchisees. This includes proprietary business practices, marketing strategies, and other non-public information critical to the Counselor Realty system. The franchisee is responsible for ensuring that their business manager adheres to this requirement.
In addition to the business manager, the franchisee themselves is also bound by confidentiality obligations. The franchisee must not disclose or use any confidential information except to operate the business during the term of the agreement. Upon termination or expiration of the agreement, the franchisee must return all Franchise Policy Guidelines to Counselor Realty, reinforcing the importance of maintaining confidentiality even after the business relationship ends.