Does the non-solicitation clause for Counselor Realty apply only within the United States?
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 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the non-solicitation clause extends beyond the United States. 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 cannot solicit any agent, employee, or independent contractor of Counselor Realty or another Counselor Realty franchisee. This restriction applies not only within the United States but also in any other geographical area where Counselor Realty operates.
This means that if Counselor Realty expands its franchise operations to other countries, the non-solicitation clause would also apply in those regions. A franchisee is prohibited from attempting to hire or contract with individuals associated with Counselor Realty in those international locations. The clause specifically prevents franchisees from inducing these individuals to leave their employment or contract with Counselor Realty or another franchisee, regardless of the country.
For a prospective franchisee, this has significant implications. It is crucial to understand the geographical scope of Counselor Realty's operations and the corresponding reach of the non-solicitation clause. If Counselor Realty expands internationally, the franchisee's ability to recruit agents or employees from within the Counselor Realty network will be restricted in those international areas as well. This could impact the franchisee's growth strategy and recruitment efforts, especially if they have connections or plans to operate in regions outside the United States where Counselor Realty has a presence.