What section of the Counselor Realty Franchise Agreement addresses non-competition covenants after the Counselor Realty franchise is terminated or expires?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | 7.2 | No solicitation of agents, employees or independent contractors of Counselor or any of Counselor's franchisees for 24- months post-termination |
- (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 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, Item 17 summarizes the sections in the franchise agreement that address non-competition covenants after the franchise is terminated or expires. Specifically, section 7.2 of the franchise agreement contains these covenants.
After the Counselor Realty franchise is terminated or expires, the franchisee is restricted from soliciting agents, employees, or independent contractors of Counselor Realty or any of its franchisees for 24 months post-termination. This restriction applies to prevent former franchisees from poaching talent from the Counselor Realty system.
Item 22 further clarifies the restrictions. During the term of the agreement and for 24 months after the agreement expires, is terminated, or is transferred, the franchisee cannot 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 is to prevent the franchisee from hiring or contracting such persons or entities to work for them or inducing them to leave their employment or contract with Counselor Realty or another Counselor Realty franchisee. This clause applies within the United States and any other geographical area in which Counselor Realty operates.