If Counselor Realty buys insurance on behalf of a franchisee, when must the Counselor Realty franchisee reimburse Counselor Realty?
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 must maintain specific types and levels of insurance coverage as required by the state in which they operate their business, including general liability insurance with a minimum limit of $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. The insurance must be with insurers and on forms acceptable to Counselor Realty, name Counselor Realty as an additional insured, and waive subrogation.
If a Counselor Realty franchisee fails to maintain the required insurance, Counselor Realty has the option, but not the obligation, to buy such insurance on behalf of the franchisee. Should Counselor Realty choose to purchase insurance on behalf of a franchisee, the franchisee is obligated to reimburse Counselor Realty immediately upon request.
This requirement ensures that all Counselor Realty franchisees maintain adequate insurance coverage, protecting both the franchisee and Counselor Realty from potential liabilities. The immediate reimbursement requirement underscores the importance of franchisees maintaining their own insurance and avoiding reliance on Counselor Realty to secure coverage on their behalf.