What is the geographic scope of the non-solicitation clause for Counselor Realty franchisees?
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 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the non-solicitation clause extends throughout the United States and any other geographical area in which Counselor Realty operates. This means that for a period of 24 months after the franchise agreement expires, is terminated, or is transferred, a franchisee cannot solicit any agent, employee, or independent contractor of Counselor Realty or another Counselor Realty franchisee. This restriction applies if the person or entity was associated with Counselor Realty within the six months prior to the solicitation.
The non-solicitation clause prevents franchisees from actively recruiting employees or contractors from Counselor Realty's network to work for their own business or another party. The clause aims to protect Counselor Realty's investment in its workforce and maintain stability within the franchise system.
For a prospective franchisee, this clause means that after leaving the Counselor Realty system, they cannot actively target current or recent personnel within the Counselor Realty network for recruitment. This restriction is in place to prevent unfair competition and protect the franchisor and other franchisees from losing valuable staff to a former franchisee. The franchisee should be aware of this restriction and factor it into their business plans both during and after their time with Counselor Realty.