Which item in the Counselor Realty Disclosure Document relates to non-competition and non-solicitation covenants for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Provision | Section(s) in Franchise or Other Agreement | Summary | |
|---|---|---|---|
| j. Assignment of contract by franchisor | Section 9.4 | Counselor may transfer its interest in Franchise Agreement by notice to you | |
| k. "Transfer" by franchisee -- definition | Section 9.1 | Includes transfer of your interest in Franchise Agreement, the Office, Business or Business assets, or an interest in your business entity or your owners | |
| l. Franchisor approval of transfer by franchisee | Section 9.1 | Counselor has the right to consent to all transfers (other than a transfer of less than a majority interest in your business entity or your owners) and will consent if Counselor deems transferee qualified and conditions specified in Franchise Agreement are satisfied | |
| m. Conditions for franchisor approval of transfer | Sections 9.1, 9.2 | Transferee qualifies; payment of transfer fee; payment of all amounts owing; renovation to then-current System standards; execution of guaranty by buyer's shareholders or owners | |
| n. Franchisor's right of | Section 9.6 | Counselor has the right of first | |
| first refusal to acquire | refusal to match any offer for your | ||
| franchisee's business | Business | ||
| o. Franchisor's option to | Not applicable | Not applicable | |
| purchase franchisee's | |||
| business | |||
| p. Death or disability of franchisee | Section 9.3 | Decedent's (or disabled person's) executor, heir, successor or legal representative must apply for Counselor's consent to transfer within 60 days after death or incapacity, and comply with transfer provisions of Franchise Agreement | |
| q. Non-competition covenants during the term of the franchise | Section 7.2 | No direct or indirect involvement in any different or competing real estate brokerage service business within 50 miles of Office; no solicitation of agents, employees or independent | |
| Provision | Section(s) in Franchise or Other Agreement | Summary contractors of Counselor or any of Counselor's franchisees | |
| r. Non-competition covenants after the franchise is terminated or expires | 7.2 | No solicitation of agents, employees or independent contractors of Counselor or any of Counselor's franchisees for 24- months post-termination | |
| s. Modification of the agreement | Section 13.2 | No modifications generally but Franchise Policy Guidelines and licensed Marks subject to change by Counselor | |
| t. Integration/merger clause | Section 13.1 | Only the terms of the Franchise Agreement are binding on Counselor | |
| u. Dispute resolution by arbitration or mediation | Section 10.1 | Most disputes are resolved by individual binding arbitration conducted in Minneapolis, Minnesota | |
| v. Choice of forum | Not applicable | Not applicable | |
| w. Choice of law | Section 13.2 | Minnesota law applies (except Minnesota Franchises Law applies only to franchisees whose principal place of business is located in Minnesota and to whom Minnesota Franchise Act applies by its own terms) | |
| Provision | Section(s) in Franchise or Other Agreement | ||
| j. | Assignment of contract by franchisor | Section 9.4 | |
| k. | "Transfer" by franchisee definition | Section 9.1 | |
| l. | Franchisor approval of transfer by franchisee | Section 9.1 | |
| m. | Conditions for franchisor approval of transfer | Sections 9.1, 9.2 | |
| n. | Franchisor's right of first refusal to acquire franchisee's business | Section 9.6 | |
| o. | Franchisor's option to purchase franchisee's business | Not applicable | |
| p. | Death or disability of franchisee | Section 9.3 | |
| q. | Non-competition covenants during the term of the franchise | Section 7.2 | |
| Provision | Section(s) in Franchise or Other Agreement | Summary contractors of Counselor or any of Counselor's franchisees | |
| ---- | --------------------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| r. | Non-competition covenants after the franchise is terminated or expires | 7.2 | No solicitation of agents, employees or independent contractors of Counselor or any of Counselor's franchisees for 24- months post-termination |
| s. | Modification of the agreement | Section 13.2 | No modifications generally but Franchise Policy Guidelines and licensed Marks subject to change by Counselor |
| t. | Integration/merger clause | Section 13.1 | Only the terms of the Franchise Agreement are binding on Counselor |
| u. | Dispute resolution by arbitration or mediation | Section 10.1 | Most disputes are resolved by individual binding arbitration conducted in Minneapolis, Minnesota |
| v. | Choice of forum | Not applicable | Not applicable |
| w. | Choice of law | Section 13.2 | Minnesota law applies (except Minnesota Franchises Law applies only to franchisees whose principal place of business is located in Minnesota and to whom Minnesota Franchise Act applies by its own terms) |
18. PUBLIC FIGURES
Counselor does not use any public figure to promote its franchises.
19. FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to disclose information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and the information is included in the disclosure document.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Item 17 addresses non-competition and non-solicitation covenants. Specifically, it outlines these covenants both during the term of the franchise and after termination or expiration.
The document states that during the franchise term, Section 7.2 of the Franchise Agreement prohibits direct or indirect involvement in any different or competing real estate brokerage service business within 50 miles of the Counselor Realty Office. It also restricts the solicitation of agents, employees, or independent contractors of Counselor Realty or any of its franchisees.
After the franchise is terminated or expires, Section 7.2 prohibits the solicitation of agents, employees, or independent contractors of Counselor Realty or any of its franchisees for 24 months post-termination. This means that for two years after leaving the Counselor Realty system, a former franchisee cannot actively try to recruit individuals associated with the brand. This is a fairly standard practice in franchising to protect the franchisor's network and workforce.