What is Christies International Real Estate's requirement regarding insurance coverage for franchisees?
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)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, franchisees must purchase and maintain the insurance coverage types and amounts specified in the Operations Manual. The franchisee is responsible for covering the expense 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. Additionally, the insurance must provide the minimum coverage that Christies International Real Estate designates in the Operations Manual for each business operated by the franchisee, and Christies International Real Estate must receive 30 days' prior written notice of any material changes to or termination of the policy.
Christies International Real Estate retains the right to increase the minimum liability protection requirements or require different or additional kinds of insurance with prior written notice to the franchisee. If a franchisee fails to maintain the required insurance coverage, Christies International Real Estate has the option to obtain insurance coverage on behalf of the franchisee, with the franchisee responsible for promptly paying all associated costs and premiums upon demand. Franchisees must provide copies of insurance certificates, policy endorsements, or other evidence of compliance at least two weeks before commencing business operations and at other times as required by Christies International Real Estate. Franchisees must also provide evidence of policy renewals or extensions in a form required by Christies International Real Estate.