What is the estimated range for insurance costs for a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
NT**
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Fee (see Item 5) | $7,500 to $15,000 | Lump sum | When you sign Franchise Agreement | Counselor |
| Rea |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the estimated initial cost for insurance ranges from $1,500 to $6,000. This figure covers the initial premiums for the required general liability insurance and errors and omissions insurance. Counselor Realty mandates that franchisees maintain general liability insurance with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, along with errors and omissions insurance with a minimum limit of $1,000,000.
Prospective franchisees should budget for these insurance costs as part of their initial investment. It is important to note that the $1,500 to $6,000 range is an estimate for the initial premiums only. The cost of other insurance coverages that a franchisee may choose to purchase can vary significantly.
Factors influencing insurance costs include the specific types and levels of coverage required by the state in which the Counselor Realty franchise operates, as well as any additional insurance mandated by the office lease or mortgage. Franchisees should obtain quotes from multiple insurance carriers to ensure they receive competitive rates and adequate coverage. Understanding the specific insurance requirements and shopping around for the best rates can help franchisees manage their initial investment and ongoing operating expenses effectively.