When is the insurance payment due 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 initial insurance payment is due before opening the franchise. The estimated cost for this initial premium ranges from $1,500 to $6,000, paid as a lump sum to insurance carriers.
Counselor Realty requires franchisees to maintain specific insurance coverage, including general liability insurance with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, and errors and omissions insurance with a minimum limit of at least $1,000,000. The initial premium covers the first year of these required insurances if the franchisee does not already have acceptable coverage.
It is important for prospective Counselor Realty franchisees to factor this cost into their initial investment and ensure they have adequate insurance coverage before commencing operations. The FDD also notes that the cost of other coverages can vary widely, so franchisees should consult with insurance providers to determine the best coverage options for their specific needs and circumstances. Understanding these insurance requirements and costs is crucial for managing risk and ensuring the long-term viability of the Counselor Realty franchise.