What is the meaning of 'waive subrogation' in the context of a Counselor Realty franchise insurance policy?
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 are required to maintain certain types and levels of insurance coverage. Specifically, franchisees must have general liability insurance with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, as well as errors and omissions insurance with a minimum limit of at least $1,000,000.
The FDD states that the insurance policies must name Counselor Realty as an additional insured and include a waiver of subrogation. In simple terms, "waive subrogation" means that the insurance company agrees not to seek reimbursement from Counselor Realty for any claims they pay out to the franchisee due to an incident for which Counselor Realty might be responsible. This protects Counselor Realty from potential lawsuits or claims by the insurance company.
For a Counselor Realty franchisee, this requirement means they must ensure their insurance policies include this waiver. Failure to do so could result in the franchisee being in breach of the franchise agreement. Additionally, if a franchisee fails to maintain the required insurance, Counselor Realty has the option (but not the obligation) to purchase the insurance themselves and seek immediate reimbursement from the franchisee. This clause ensures that Counselor Realty is protected from potential liabilities arising from the franchisee's business operations and that the franchisee maintains adequate insurance coverage.