What page of the Counselor Realty franchise agreement discusses insurance requirements?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
gh your Office (including any Additional Office or Extension Office).
8. FINANCIAL STANDARDS.
- 8.1 Records and Reports. You must keep and give us the information, reports, books and records concerning the Office (including any Additional Office and Extension Office) and Business we specify, on forms or in media we specify periodically. You will allow us to inspect, copy and audit such records, both at the Office (including any Additional Office and Extension Office) and remotely by electronic means. If Franchisee is a partnership, corporation or other entity, you must provide us with copies of Franchisee's organizational documents (including, without limitation, as applicable, its articles of incorporation, bylaws, operating agreement or partnership agreement) and breakdown of ownership. You must report promptly to us any claim involving the 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 are not required to, do) you will reimburse us immediately upon request.
- 8.3 Indemnification. You will defend, indemnify and hold harmless Counselor, its affiliates and their respective officers, agents, and employees from all suits, claims, demands, liabilities and costs, including attorneys' fees, in tort, contract, or otherwise, arising out of or in connection with your operation of the Business except to the extent caused by direct and proximate consequences of our negligence. You waive and release all claims against Counselor, its affiliates, and their respective officers, agents, and employees for damages to property or injuries to persons arising out of or in connection with operation of the Business except to the
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the insurance requirements for franchisees are detailed within Item 22, specifically under section 8.2, titled "Insurance". This section of the franchise agreement outlines the types and levels of insurance coverage a franchisee must maintain.
The agreement stipulates that franchisees must maintain the types and levels of insurance coverage required by the state in which they operate their business. This includes adhering to insurance requirements mandated by law and by their office lease or mortgage. Additionally, franchisees are required to carry errors and omissions insurance coverage.
Specifically, Counselor Realty requires franchisees to maintain general liability insurance on an occurrence basis with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, along with errors and omission 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, naming Counselor Realty as an additional insured and waiving subrogation. If a franchisee fails to maintain the required insurance, Counselor Realty has the option, but not the obligation, to procure such insurance and seek immediate reimbursement from the franchisee.