What is the role of the state in determining the required insurance 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 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the state in which a franchisee operates their business determines the types and levels of insurance coverage they must maintain. In addition to state requirements, franchisees must also adhere to insurance requirements mandated by law and by their office lease or mortgage. They are also required to carry errors and omissions insurance.
Counselor Realty mandates that franchisees 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. Additionally, they must have errors and omissions insurance with a minimum limit of $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, but not the obligation, to purchase the insurance and seek immediate reimbursement from the franchisee. This ensures that the franchisee complies with the insurance requirements set by the state and Counselor Realty, protecting both the franchisee and the franchisor from potential liabilities.