Must a Counselor Realty franchisee's insurance policies waive subrogation?
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. In addition to meeting the insurance requirements of the state in which they operate, franchisees must also maintain other insurance required by law, by their office lease or mortgage, and errors and omissions insurance coverage.
The FDD specifies that franchisees 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. They must also have errors and omission insurance with a minimum limit of at least $1,000,000.
Critically, 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 buy such insurance, and the franchisee must reimburse Counselor Realty immediately upon request.