What is the condition that allows Christies International Real Estate to purchase insurance on behalf of the franchisee?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee (Note 1) | Amount (Note 2) | Due Date | Remarks |
|---|---|---|---|
| Insurance | Actual amount incurred | Upon demand | If you fail to purchase the insurance policies required under the License Agreement, we may purchase them on your behalf, and you will reimburse us. |
Source: Item 6 — OTHER FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, Christies International Real Estate may purchase insurance policies on behalf of a franchisee if the franchisee fails to purchase the required insurance policies as outlined in the License Agreement. If this occurs, the franchisee is then responsible for reimbursing Christies International Real Estate for the actual amount incurred for the insurance.
This condition is important for prospective franchisees to understand because it means that maintaining the required insurance coverage is not just a suggestion, but a requirement that Christies International Real Estate will enforce. If a franchisee neglects to secure the necessary insurance, Christies International Real Estate has the right to step in and purchase it, ensuring that the business is protected, and then bill the franchisee for the expense.
Franchisees should carefully review the License Agreement to fully understand the types and amounts of insurance coverage they are required to maintain. Budgeting for these insurance costs is crucial for financial planning. While this arrangement ensures continuous coverage, it also places the onus on the franchisee to proactively manage their insurance obligations to avoid incurring additional costs and relinquishing control over the selection of insurance providers.