What is the effect of naming Counselor Realty as an additional insured on a Counselor Realty franchisee's insurance policy?
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 Counselor Realty's 2025 Franchise Disclosure Document, franchisees are required to maintain certain types and levels of insurance coverage, including general liability insurance 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. These insurance policies must be with insurers and on forms acceptable to Counselor Realty.
The insurance policies must name Counselor Realty as an additional insured and include a waiver of subrogation. Naming Counselor Realty as an additional insured on the franchisee's insurance policy means that Counselor Realty is protected under the franchisee's insurance policy. This provides Counselor Realty with a direct avenue for making claims against the policy in the event of a covered loss arising from the franchisee's operations. The waiver of subrogation prevents the insurance company from pursuing Counselor Realty to recover any payments made on a claim.
If a Counselor Realty franchisee fails to maintain the required insurance, Counselor Realty has the option, but not the obligation, to buy such insurance and be immediately reimbursed by the franchisee upon request. This requirement ensures that Counselor Realty is protected from potential liabilities arising from the franchisee's business operations and maintains consistent risk management across the franchise system.