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Does the non-solicitation clause for Counselor Realty apply to soliciting customers?

Counselor_Realty Franchise · 2025 FDD

Answer from 2025 FDD Document

7.2 Best Efforts, Confidentiality and No Conflicts of Interest.

  • (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 Counselor Realty's 2025 Franchise Disclosure Document, the non-solicitation clause does not apply to soliciting customers. The franchise agreement states that during the term of the agreement and for 24 months after the agreement expires, is terminated, or is transferred, a franchisee will not solicit 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 is specifically for the purpose of hiring or contracting such individuals to work for the franchisee or inducing them to leave their employment or contract with Counselor Realty or another franchisee.

This means that after the franchise agreement ends, a former franchisee is restricted from poaching agents, employees, or independent contractors from Counselor Realty or other franchisees for a period of two years. The non-solicitation clause is designed to protect Counselor Realty's workforce and prevent franchisees from unfairly competing for personnel.

However, the non-solicitation clause does not prevent a franchisee from soliciting customers. Franchisees are free to market their services and solicit customers without violating the terms of the franchise agreement. This allows franchisees to focus on growing their business and building relationships with clients without fear of violating the non-solicitation clause, as long as they do not target the company's or other franchisees' agents, employees, or contractors.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.