For how long after the Counselor Realty agreement expires does the non-compete clause remain in effect?
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-compete clause related to soliciting Counselor Realty's agents, employees, or independent contractors extends for a period of 24 months after the agreement expires, is terminated, or is transferred. This restriction applies within the United States and any other geographical area in which Counselor Realty operates.
Specifically, during this 24-month period, a former franchisee is prohibited from soliciting or causing the solicitation of any person or entity who is, or was within the previous six months, an agent, employee, or independent contractor of Counselor Realty or another Counselor Realty franchisee. This includes soliciting for the purpose of hiring or contracting such individuals to work for the former franchisee or any other party, or for the purpose of inducing them to leave their employment or contract with Counselor Realty or another franchisee.
This provision aims to protect Counselor Realty's business interests by preventing former franchisees from poaching its workforce or the workforce of other franchisees. It is important for prospective franchisees to understand the scope and duration of this non-compete clause, as it could impact their ability to operate a similar business or employ individuals previously associated with Counselor Realty after the franchise agreement ends.