Does the release of claims by a Counselor Realty franchisee extend to damages to property?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 extent caused by direct and proximate consequences of our negligence.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees waive and release all claims against Counselor Realty, its affiliates, and their respective officers, agents, and employees for damages to property arising out of or in connection with the operation of the franchised business. This release is not absolute, as it does not extend to damages caused by the direct and proximate consequences of Counselor Realty's negligence.
This means that a Counselor Realty franchisee generally cannot sue Counselor Realty for property damage related to the franchise's operation, unless the damage was a direct result of Counselor Realty's negligence. This clause is designed to protect Counselor Realty from liability for events outside of its direct control, shifting the responsibility to the franchisee.
For a prospective franchisee, this underscores the importance of maintaining adequate insurance coverage to protect against potential property damage. It also highlights the need to carefully assess risks associated with the business's operation and to understand the limitations on claims against the franchisor. Franchisees should consult with a legal professional to fully understand the implications of this waiver and release provision.