Does the non-competition covenant for Counselor Realty franchisees prevent solicitation of agents of Counselor Realty?
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 Counselor Realty's 2025 Franchise Disclosure Document, the non-competition covenant restricts franchisees from soliciting agents, employees, or independent contractors of Counselor Realty or any of its franchisees. This restriction applies both during the term of the franchise agreement and for a period of 24 months after the agreement expires, is terminated, or is transferred. The restriction applies within the United States and any other geographical area in which Counselor Realty operates.
Specifically, a Counselor Realty franchisee is prohibited 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 is to prevent franchisees from hiring or contracting such individuals to work for them or any other party, or from inducing them to leave their employment or contract with Counselor Realty or another franchisee.
This non-solicitation clause is a standard practice in franchising to protect the franchisor's and other franchisees' investment in their workforce. It aims to maintain stability within the franchise system by preventing franchisees from poaching talent from each other or from the franchisor itself. For a prospective Counselor Realty franchisee, this means they cannot actively recruit agents or employees from other parts of the Counselor Realty network, even after they leave the system, for a defined period.