Besides the franchisee, who else must Sales Associates name as additional insureds on their automobile liability insurance policies for a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You will also be required to ensure that each Sales Associate in your Office obtains automobile liability insurance covering each vehicle used at any time by the Sales Associate for business purposes and use your best efforts to ensure that each such policy (i) names RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional (and their officers, managers, directors, and employees) as additional insureds; (ii) provides coverage to RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional on a primary and noncontributory basis; (iii) contains a waiver by the insurance carrier of all subrogation rights against RE/MAX Holdings, Inc., REMAX, LLC, RE/MAX Regional and other parties covered by the insurance; (iv) provides the same amount of coverage as you are required to obtain as set forth in number 3 above; and (v) contains a provision that RE/MAX Holdings, Inc., REMAX, LLC and
RE/MAX Regional receive prior written notice of termination, expiration, cancellation or modification of such policy.
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, Sales Associates must name several entities as additional insureds on their automobile liability insurance policies. Specifically, each policy must include RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional, along with their respective officers, directors, and employees.
This requirement ensures that Remax's corporate entities and personnel are protected from liability arising from the Sales Associates' business use of vehicles. This protection extends to coverage on a primary and noncontributory basis, meaning that the Sales Associate's insurance policy is the first line of defense and Remax will not be expected to contribute to a claim if other insurance is available.
Additionally, the insurance policy must contain a waiver of subrogation rights, preventing the insurance carrier from pursuing claims against RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional. The policy must also provide the same amount of coverage that the franchisee is required to obtain and include a provision that RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional receive prior written notice of any termination, expiration, cancellation, or modification of the policy. These stipulations are designed to provide comprehensive protection and ensure that Remax is promptly informed of any changes to the insurance coverage.