How long does the post-termination non-solicitation covenant last for a Counselor Realty franchise?
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, the post-termination non-solicitation covenant lasts for 24 months. This means that for a period of two years after the expiration, termination, or transfer of the franchise agreement, a franchisee is restricted from soliciting agents, employees, or independent contractors of Counselor Realty or any of its other franchisees.
This restriction applies within the United States and any other geographical area in which Counselor Realty operates. The non-solicitation clause prevents a former franchisee from attempting to hire or contract with individuals associated with Counselor Realty, or from inducing them to leave their employment or contract with Counselor Realty or its franchisees.
Such a clause is common in franchising to protect the franchisor's network and prevent franchisees from poaching talent after leaving the system. It is important for prospective franchisees to understand the scope and duration of this restriction, as violating it could lead to legal consequences.