Does the non-solicitation clause prevent a Counselor Realty franchisee from receiving unsolicited applications from employees of other franchisees?
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 franchise agreement includes a non-solicitation clause that restricts franchisees from actively recruiting agents, employees, or independent contractors from Counselor Realty or other Counselor Realty franchisees. This restriction is in effect during the term of the Franchise Agreement and extends for 24 months after the agreement expires, is terminated, or is transferred.
However, the clause specifically prohibits a franchisee from soliciting or causing the solicitation of these individuals for the purpose of hiring or contracting them. It also prevents franchisees from inducing these individuals to leave their current employment or contract with Counselor Realty or another franchisee. The non-solicitation clause applies within the United States and any other geographical area in which Counselor Realty operates.
Therefore, the non-solicitation clause does not explicitly prevent a Counselor Realty franchisee from receiving unsolicited applications from employees of other franchisees. The restriction focuses on actively soliciting or inducing individuals to leave their current positions, not on passively receiving applications initiated by the individuals themselves. A franchisee could potentially hire someone who applies to them without violating the agreement, as long as they did not actively solicit the application.