Under what circumstances does a Counselor Realty franchisee NOT waive and release claims against Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee does not waive and release claims against Counselor Realty, its affiliates, and their respective officers, agents, and employees if the damages to property or injuries to persons arise out of or in connection with the operation of the business and are caused by the direct and proximate consequences of Counselor Realty's negligence.
This means that while franchisees generally waive their right to sue Counselor Realty for issues related to the business, this waiver does not apply if Counselor Realty's direct negligence caused the damages or injuries. This provision aims to protect franchisees from bearing the consequences of Counselor Realty's own negligent actions.
It is important for prospective franchisees to understand the scope of this waiver and indemnification clause. While it offers some protection against Counselor Realty's negligence, franchisees are still responsible for many aspects of their business operations and must maintain adequate insurance coverage to protect themselves against potential liabilities.