Is the cost of insurance coverage for a Counselor Realty franchise a fixed amount?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
ge. 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 omissions insurance with a minimum limit of at least $1,000,000. If you do not already carry acceptable coverage, initial premiums for required insurance are estimated to be approximately $1,500 to $6,000 per year. The cost of other coverages, including your discretionary purchases, varies widely.
- E. The costs that are incurred to develop a franchisee's website vary based upon the following: size of office (number of agents, size of territory, content required by franchisee) and cost to purchase IDX or similar shared listing content.
- F.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the cost of insurance coverage is not a fixed amount. The FDD states that initial premiums for required insurance are estimated to be approximately $1,500 to $6,000 per year. This range indicates that the cost can vary. The cost of other coverages, including discretionary purchases, varies widely, suggesting that insurance costs are dependent on the specific coverage levels and the franchisee's choices.
Several factors can influence the cost of insurance for a Counselor Realty franchise. The specific types and levels of insurance coverage required by the state in which the franchisee operates their business will impact the cost. Additionally, the franchisee must maintain other insurance required by law and by their office lease or mortgage, which can further affect the overall expense. The FDD specifies minimum limits for general liability insurance ($1,000,000 per occurrence and $2,000,000 in the aggregate) and errors and omissions insurance ($1,000,000 minimum limit), but the actual cost to obtain this coverage can vary based on the insurance provider and other factors.
Prospective Counselor Realty franchisees should obtain detailed insurance quotes to understand the potential costs in their specific location. They should also clarify with Counselor Realty what specific insurance coverages are mandatory and what additional discretionary coverages might be beneficial. Understanding these factors will help franchisees budget accurately for their initial investment and ongoing operational expenses.