Besides state-required insurance, what other insurance is a Counselor Realty franchisee required to maintain?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Business and any change in the Franchisee's organizational documents.
- 8.2 Insurance. You must maintain types and levels of insurance coverage required by the state in which you operate your Business. You also must maintain other insurance required by law, and by your Office (including any Additional Office and Extension Office) lease or mortgage, and errors and omissions insurance coverage. You must maintain general liability insurance on an occurrence basis with a minimum limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, and errors and omission insurance with a minimum limit of at least $1,000,000. Insurance shall be with insurers and on forms acceptable to us, shall name Counselor as an additional insured, and waive subrogation. If we buy such insurance because you fail to do so (which we may, but ar
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty FDD, franchisees must maintain specific types and levels of insurance coverage. In addition to the insurance required by the state in which they operate, franchisees must also maintain insurance required by their office lease or mortgage, as well as errors and omissions insurance coverage.
The FDD specifies that franchisees must maintain general liability insurance on an occurrence basis with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate. Additionally, they need errors and omissions insurance with a minimum limit of at least $1,000,000.
The insurance policies must be with insurers and on forms acceptable to Counselor Realty, must name Counselor Realty as an additional insured, and must waive subrogation. If a franchisee fails to maintain the required insurance, Counselor Realty has the option, but not the obligation, to purchase the insurance and require the franchisee to reimburse them immediately upon request. This ensures that Counselor Realty is protected from potential liabilities arising from the franchisee's business operations.