Besides the franchisee, who else must be covered under the comprehensive general liability insurance policy for a Remax franchise, and what is the minimum coverage amount required for them?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
th the operation of the Office or otherwise in conjunction with the conduct of business, in the face amount of not less than $2,000,000 per occurrence or claim and annual aggregate. Coverage must also include broad form contractual liability, broad form property damage, personal and advertising injury, premises liability and products liability. You will also be required to secure endo
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–53)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees are required to secure endorsements covering each of their Sales Associates under their comprehensive general liability insurance policy. Alternatively, the franchisee must ensure that each Sales Associate secures comprehensive general liability insurance on their own behalf. The minimum coverage amount required for each Sales Associate is $2,000,000 per occurrence and annual aggregate.
This requirement ensures that all individuals working under the Remax brand are adequately insured against potential liabilities arising from their business operations. By either including Sales Associates under the franchisee's policy or ensuring they obtain their own coverage, Remax aims to mitigate risks associated with bodily injury, personal injury, death, and property damage claims.
For a prospective Remax franchisee, this means understanding the costs associated with providing insurance coverage for all Sales Associates. Franchisees should factor in the cost of endorsements to their existing policy or the administrative burden of verifying that each Sales Associate maintains their own insurance. Failure to comply with these insurance requirements could result in the franchisee being held liable for the actions of uninsured Sales Associates or potential breaches of the franchise agreement.