To whom is the insurance payment made 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 insurance payment is made to Insurance Carriers. As shown in Item 7 regarding the initial investment, the estimated cost for insurance ranges from $1,500 to $6,000, payable as a lump sum before opening the Counselor Realty franchise.
Counselor Realty requires franchisees to maintain specific insurance coverages, 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 premiums for this required insurance are included in the estimated cost.
Prospective Counselor Realty franchisees should factor these insurance costs into their initial investment and ongoing operational expenses. It is important to obtain the necessary insurance coverage to protect the business from potential liabilities and ensure compliance with Counselor Realty's requirements and legal obligations. The franchisee is also responsible for maintaining other insurance required by law, and by their office lease or mortgage.