Does the release of claims by a Counselor Realty franchisee extend to injuries to persons?

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 or injuries to persons arising out of or in connection with the operation of the franchisee's business. This release is not absolute, as it does not extend to damages or injuries caused by the direct and proximate consequences of Counselor Realty's negligence.

In practical terms, this means that a Counselor Realty franchisee assumes responsibility for most liabilities related to their business operations. For example, if a customer slips and falls in the franchisee's office, the franchisee generally cannot sue Counselor Realty for damages unless they can prove Counselor Realty's direct negligence caused the incident. This clause protects Counselor Realty from vicarious liability for the actions of its franchisees.

This type of clause is common in franchise agreements, as franchisors seek to limit their liability for the independent actions of their franchisees. However, it's important for prospective franchisees to understand the scope of this release and to ensure they have adequate insurance coverage to protect themselves against potential claims. Franchisees should consult with legal counsel to fully understand the implications of this clause and to assess their risk exposure.