Under what condition can Christies International Real Estate require other insurance coverage?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to or in lieu of the above, you must maintain any other insurance as may be required by statute or regulation of the state in which you operate the Business. If your state or local insurance requirements, including coverage requirements, are less stringent, less comprehensive, or lower than what we have specified, you must comply with our requirements. We will provide you with a list of approved insurance carriers, and related information in the Operations Manual, and you must obtain required insurance coverages from an approved insurance carrier. You must name us, our affiliates, and our and our affiliates' respective owners, officers, directors, and employees as additional insured for each required policy. All insurance policies must contain a waiver of the insurance company's right of subrogation against us and must provide that we will receive prior written notice of any material change, termination, expiration or cancellation of any policy.
We may periodically change the minimum coverage and deductible requirements for you, and we may require different or additional kinds of insurance for you to reflect economic, industry, or standard changes in your liability and insurance coverage. We will provide you prior written notice and at least 45 days to obtain the revised insurance policies.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, franchisees must maintain specific insurance policies, including comprehensive general liability, workers' compensation, automobile liability, and errors and omissions liability insurance. The minimum coverage amounts for these policies are explicitly stated, such as $1,000,000 per occurrence for bodily injury and property damage under the general liability policy. Additionally, Christies International Real Estate can mandate other insurance coverage under certain conditions.
Specifically, Christies International Real Estate may require franchisees to maintain additional insurance if it is mandated by the statute or regulation of the state in which they operate their business. Furthermore, Christies International Real Estate retains the right to modify the minimum coverage and deductible requirements periodically. They can also demand different or additional types of insurance to reflect changes in economic conditions, industry standards, or typical liability and insurance coverage norms.
Christies International Real Estate is obligated to provide franchisees with prior written notice, allowing at least 45 days to obtain the revised insurance policies. This ensures that franchisees have adequate time to adjust their insurance coverage to meet the new requirements. Franchisees must also provide copies of insurance certificates and policy endorsements to Christies International Real Estate before opening their business and upon renewal of their policies.
These stipulations are fairly standard in franchising, as franchisors need to protect their brand and manage risk across the entire system. Prospective Christies International Real Estate franchisees should carefully review the insurance requirements and factor these costs into their initial investment and ongoing operating expenses. It is also advisable to maintain open communication with Christies International Real Estate regarding any changes in insurance requirements to ensure compliance and avoid potential penalties.