What claims does a Counselor Realty franchisee waive and release against Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
You will defend, indemnify and hold harmless Counselor, its affiliates and their respective officers, agents, and employees from all suits, claims, demands, liabilities and costs, including attorneys' fees, in tort, contract, or otherwise, arising out of or in connection with your operation of the Business except to the extent caused by direct and proximate consequences of our negligence. You waive and release all claims against Counselor, its affiliates, and their respective officers, agents, and employees for damages to property or injuries to persons arising out of or in connection with operation of the Business except to the extent caused by direct and proximate consequences of our negligence.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, franchisees waive and release all claims against Counselor Realty, its affiliates, and their respective officers, agents, and employees for damages to property or injuries to persons. This waiver and release applies to claims arising out of or in connection with the operation of the franchisee's business.
However, there is an exception to this waiver. Franchisees do not waive or release claims to the extent that the damages or injuries are caused by the direct and proximate consequences of Counselor Realty's negligence. This means that if Counselor Realty is directly negligent and that negligence directly causes damage to property or injury to persons, the franchisee retains the right to make a claim against them.
This type of clause is common in franchise agreements, as it aims to protect the franchisor from liability for events occurring during the franchisee's operation of the business. However, the inclusion of the exception for direct negligence provides some protection for the franchisee, ensuring that Counselor Realty cannot avoid responsibility for its own negligent actions.