What is the geographic limit on non-competition for a Counselor Realty franchisee during the term of the franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
tly 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.
- (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) m
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, during the term of the Franchise Agreement, a franchisee is restricted from owning any interest in, working for, engaging in, or assisting any real estate brokerage service business other than Counselor Realty. This restriction applies to businesses that compete with Counselor Realty and are located at or within 50 miles of the franchisee's Office, Additional Office, or Extension Office. This non-compete obligation is in effect unless the franchisee obtains prior written approval from Counselor Realty.
This means that as a Counselor Realty franchisee, you must dedicate your efforts to your Counselor Realty business and avoid any conflicting interests within a 50-mile radius of your franchised locations. This restriction ensures that franchisees are fully committed to the Counselor Realty brand and do not divert resources or expertise to competing ventures. The franchisee must seek approval from Counselor Realty if they wish to engage in any real estate activities outside of their franchise agreement within that 50 mile radius.
The FDD also summarizes this non-competition covenant in Item 17, stating that during the franchise term, franchisees cannot have direct or indirect involvement in any different or competing real estate brokerage service business within 50 miles of their office. This summary reinforces the importance of adhering to the non-compete terms outlined in Section 7.2 of the Franchise Agreement. This restriction also includes not soliciting agents, employees, or independent contractors of Counselor Realty or any of Counselor Realty's franchisees.
It is important for prospective franchisees to carefully consider this geographic restriction and ensure that they are comfortable with the limitations it places on their business activities during the term of the franchise agreement. Franchisees should also be aware that violating this non-compete clause could result in legal action or termination of the franchise agreement.