Does the non-competition covenant for Counselor Realty franchisees prevent indirect involvement in any different or competing real estate brokerage service business?

According to Counselor Realty's 2025 Franchise Disclosure Document, during the term of the franchise agreement, franchisees are restricted from direct or indirect involvement in any competing real estate brokerage service business. Specifically, franchisees cannot own any interest in, work for, engage in, or assist any real estate brokerage service business other than Counselor Realty, or any business that competes with Counselor Realty. This restriction applies at or within 50 miles of the franchisee's office, including any additional or extension offices, without prior written approval from Counselor Realty.

This non-compete clause ensures that franchisees dedicate their full attention and efforts to operating their Counselor Realty franchise and prevents them from diverting resources or expertise to competing ventures. The 50-mile radius restriction aims to protect Counselor Realty's market share within a reasonable geographic area around the franchised location. Obtaining written approval from Counselor Realty is essential if a franchisee wishes to engage in any activity that might be construed as competitive, even indirectly.

After the franchise agreement expires, is terminated, or is transferred, a different non-compete clause takes effect. This clause prohibits the franchisee from soliciting agents, employees, or independent contractors of Counselor Realty or any of its franchisees for 24 months post-termination. This post-term restriction focuses on preventing the poaching of personnel rather than restricting ownership or operation of a competing business.

Prospective franchisees should carefully consider these non-compete provisions and how they might affect their future business activities. It is important to understand the scope and duration of these restrictions before entering into a franchise agreement with Counselor Realty.