What is the franchisee required to maintain in their account to ensure payment to Christies International Real Estate?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.16.
Insurance.** You agree to purchase and maintain in force, at your expense, all of the insurance coverage we require in the types and amounts described in the Operations Manual.
All insurance policies will: (1) be issued by an insurance carrier(s) acceptable to us; (2) will name us and our affiliates as an additional named insureds; (3) contain a waiver of the insurance company's right of subrogation against us; (4) contain the minimum insurance coverage that we designate in the Operations Manual for each CHRISTIE'S INTERNATIONAL REAL ESTATE business that you operate, including this Business; and (5) provide that we will receive 30 days' prior written notice of any material change in or termination, expiration or cancellation of any policy.
We periodically may, with prior written notice to you, increase the minimum liability protection requirements, and require different or additional kinds of insurance to reflect inflation or changes in standards of liability.
If you at any time fail to maintain in effect any insurance coverage we require, or to furnish satisfactory evidence thereof, we, at our option, may obtain insurance coverage for you.
You agree to promptly sign any applications or other forms or instruments required to obtain any insurance and pay to us, on demand, any costs and premiums we incur.
You will provide us with copies of the certificate of insurance, insurance policy endorsements or other evidence of compliance
with these requirements at least 2 weeks before you take possession and commence development of the Business premises, and at such other times as we may require.
In addition, you will provide to us a copy of the evidence of the renewal or extension of each insurance policy in a form we require.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Christies International Real Estate requires franchisees to purchase and maintain specific insurance coverage. The franchisee is responsible for covering the expenses of this insurance.
The insurance policies must be issued by an insurance carrier acceptable to Christies International Real Estate and must name Christies International Real Estate and its affiliates as additional insured parties. The policies must include a waiver of the insurance company's right of subrogation against Christies International Real Estate. The insurance coverage must meet the minimum requirements outlined in the Operations Manual for each Christies International Real Estate business the franchisee operates.
Christies International Real Estate must receive 30 days' prior written notice of any material change, termination, expiration, or cancellation of any policy. Christies International Real Estate may periodically increase the minimum liability protection requirements or require different or additional kinds of insurance with prior written notice to the franchisee to reflect inflation or changes in liability standards.
If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of coverage, Christies International Real Estate has the option to obtain insurance coverage for the franchisee. The franchisee must promptly sign any required applications or forms to obtain insurance and pay Christies International Real Estate, on demand, for any costs and premiums incurred. The franchisee must provide copies of the certificate of insurance, insurance policy endorsements, or other evidence of compliance at least 2 weeks before taking possession and commencing development of the business premises, and at any other times Christies International Real Estate may require. Additionally, the franchisee must provide a copy of the evidence of the renewal or extension of each insurance policy in a form required by Christies International Real Estate.