For how long after the Counselor Realty agreement is terminated does the non-compete clause remain in effect?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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) 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 has two components. During the term of the agreement, a franchisee cannot own interest in, work for, engage in, or assist any real estate brokerage service business other than Counselor Realty, or that competes with Counselor Realty, at or within 50 miles of the Office (or any Additional Office or Extension Office) without Counselor Realty's prior written approval.
Additionally, for a period of 24 months after the agreement expires, is terminated, or is transferred, the franchisee is restricted from soliciting any person or entity that is (or was within the previous six months) an agent, employee, or independent contractor of Counselor Realty or another Counselor Realty franchisee. This restriction applies within the United States and any other geographical area in which Counselor Realty operates. The franchisee is prohibited from hiring or contracting such person or entity to work for them or any other party, or for the purpose of inducing them to leave such party's employment or contract with Counselor Realty or another Counselor Realty franchisee.
This means that after the Counselor Realty franchise agreement ends, a former franchisee is restricted from soliciting Counselor Realty's agents, employees, or independent contractors for two years. This restriction is designed to protect Counselor Realty's business interests by preventing former franchisees from poaching their workforce to start a competing business.