After termination, can a former Counselor Realty franchisee solicit employees of other Counselor Realty 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 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, a former franchisee is restricted from soliciting employees of other Counselor Realty franchisees. Specifically, for a period of 24 months after the franchise 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 restriction applies within the United States and any other geographical area in which Counselor Realty operates.
This non-solicitation clause prevents former franchisees from poaching talent from the Counselor Realty system, protecting the existing franchisees and the franchisor from losing valuable personnel. The clause aims to maintain stability and prevent unfair competition within the Counselor Realty network.
For a prospective franchisee, this means that upon leaving the Counselor Realty system, they will be unable to recruit agents or employees from other Counselor Realty locations for a period of two years. This could impact their ability to quickly staff a new, competing business. It is important to understand the geographic scope of this restriction, as it applies throughout the United States and any other areas where Counselor Realty operates, not just the immediate vicinity of the former franchise location.