Does the indemnification clause for Counselor Realty extend to its affiliates?

According to Counselor Realty's 2025 Franchise Disclosure Document, the franchisee's indemnification obligations do extend to Counselor Realty's affiliates. Specifically, in the event of early termination due to failure to maintain the minimum number of sales agents in an Extension Office, the franchisee is obligated to pay all sums due to Counselor Realty or its affiliates. Additionally, upon termination or expiration of the Franchise Agreement, the franchisee is required to pay all sums due to Counselor Realty or its affiliates or which they have guaranteed.

This means that a Counselor Realty franchisee could be responsible for covering the debts, losses, or liabilities of Counselor Realty's affiliated entities, in addition to their own obligations. This could include financial responsibilities arising from the operations, guarantees, or other activities of these affiliates.

Prospective franchisees should carefully evaluate the potential financial implications of this indemnification clause and seek legal counsel to fully understand their obligations and potential risks. Understanding the scope of 'affiliates' and the nature of potential liabilities is crucial before entering into a franchise agreement with Counselor Realty.