Does the comprehensive general liability insurance for a Remax franchise need to cover Sales Associates, and if so, how?
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, a franchisee's comprehensive general liability insurance must cover claims for bodily and personal injury, death, and property damage related to the office's operation. The minimum coverage required is $2,000,000 per occurrence or claim and annual aggregate. This coverage extends to broad form contractual liability, broad form property damage, personal and advertising injury, premises liability, and products liability.
Remax franchisees must secure endorsements covering each of their sales associates under their comprehensive general liability insurance policy. Alternatively, franchisees can ensure that each sales associate independently secures comprehensive general liability insurance with a face amount of at least $2,000,000 per occurrence and annual aggregate.
In addition to comprehensive general liability insurance, Remax franchisees must also ensure that each sales associate obtains automobile liability insurance covering any vehicle used for business purposes. The franchisee must use their best efforts to ensure that each sales associate's policy names RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional as additional insureds, provides primary and noncontributory coverage to these entities, includes a waiver of subrogation rights, offers the same coverage amount required of the franchisee, and provides prior written notice of termination, expiration, cancellation, or modification to RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional.