For how long after the Counselor Realty agreement is transferred 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 extends for a period of 24 months after the franchise agreement expires, is terminated, or is transferred. This means that if a franchisee sells their Counselor Realty franchise, they are restricted from engaging in certain competitive activities for two years following the transfer.
The restriction specifically prohibits the franchisee from soliciting or causing the solicitation of 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.
This non-compete provision is designed to protect Counselor Realty's business interests by preventing former franchisees from leveraging their knowledge and relationships gained during their time with the company to unfairly compete. Prospective franchisees should carefully consider the implications of this clause, as it could limit their future business opportunities in the real estate industry after leaving the Counselor Realty system. It is a fairly standard practice in franchising to have a non-compete agreement, but the terms can vary significantly between different franchise systems.