What are the non-competition covenants during the term of the Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 7.2 | No direct or indirect involvement in any different or competing real estate brokerage service business within 50 miles of Office; no solicitation of agents, employees or independent |
| Provision | Section(s) in Franchise or Other Agreement | Summary contractors of Counselor or any of Counselor's franchisees |
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, during the term of the franchise agreement, franchisees are subject to certain non-competition covenants. Specifically, franchisees cannot have any direct or indirect involvement in any real estate brokerage service business that is different from or competes with Counselor Realty. This restriction applies within a 50-mile radius of the franchised office.
In addition to restrictions on competitive business ventures, franchisees are also prohibited from soliciting agents, employees, or independent contractors of Counselor Realty or any of its other franchisees. This means a franchisee cannot attempt to hire or contract with individuals associated with Counselor Realty or its other franchisees.
These non-competition covenants are designed to protect Counselor Realty's market position and prevent franchisees from using the franchisor's resources and reputation to directly compete with the system. Franchisees should carefully consider these restrictions and how they might impact their business plans before investing in a Counselor Realty franchise.