Which item in the Counselor Realty Disclosure Document relates to insurance requirements for a Counselor Realty franchise?
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 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Item 22, which covers contracts, outlines the insurance requirements for franchisees. Specifically, section 8.2 details the types and levels of insurance coverage a franchisee must maintain.
The FDD states that franchisees must maintain the types and levels of insurance coverage required by the state in which they operate their Counselor Realty business. In addition to state-mandated insurance, franchisees must also carry other insurance required by law, their office lease or mortgage, and errors and omissions insurance coverage.
Counselor Realty requires franchisees to 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 omissions insurance with a minimum limit of at least $1,000,000. The insurance policies must be with insurers and on forms acceptable to Counselor Realty, name Counselor Realty as an additional insured, and waive subrogation. If a franchisee fails to maintain the required insurance, Counselor Realty has the option to purchase the insurance and seek immediate reimbursement from the franchisee.