What is the purpose for which a Counselor Realty franchisee is prohibited from soliciting agents, employees, or independent contractors?
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, a franchisee is prohibited from soliciting agents, employees, or independent contractors of Counselor Realty or another Counselor Realty franchisee for specific purposes. During the term of the Franchise Agreement and for 24 months after the agreement expires, is terminated, or is transferred, a franchisee cannot solicit these individuals to hire or contract them to work for the franchisee or any other party.
The restriction also applies to inducing these individuals to leave their employment or contract with Counselor Realty or another Counselor Realty franchisee. This non-solicitation clause is in effect within the United States and any other geographical area in which Counselor Realty operates.
This provision aims to protect Counselor Realty and its franchisees from losing valuable personnel to other franchisees or competing businesses, ensuring stability and continuity within the Counselor Realty network. It is a fairly standard clause in franchise agreements to prevent franchisees from poaching staff from each other or the franchisor, which could disrupt operations and create internal competition.