What are the consequences if I or my Owners at a Remax franchise fail to obtain the insurance coverage identified in Subsection 8.D. of the Remax franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to terminate this Agreement effective 30 days after providing written notice to you if:
- (1) you or your Owners fail to meet and maintain your Minimum Agent Count as provided in Section 7 of this Agreement;
- (2) you or your Owners fail to obtain the insurance coverage identified in Subsection 8.D. of this Agreement; or
- (3) you or your Owners fail to comply with any other provision of this Agreement or any standard, procedure, policy, or guideline prescribed by us or REMAX, LLC.
This notice will advise you, and you hereby understand and agree, that if the default is not cured within 30 days, this Agreement automatically terminates at the end of such 30 days without further notice from us.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, failure to obtain the required insurance coverage as specified in Subsection 8.D of the franchise agreement can lead to significant repercussions. Remax Regional will provide a written notice, and the franchisee has 30 days to correct the failure. If the franchisee or their Owners do not obtain the necessary insurance coverage within this 30-day period, the Franchise Agreement automatically terminates without further notice from Remax.
In addition to the risk of termination, Remax retains the right to procure the necessary insurance coverage on behalf of the franchisee if the franchisee fails to maintain the required insurance or if the existing coverage is deemed inadequate. While Remax is not obligated to do so, this provision allows them to ensure compliance and protect their interests. The franchisee is then responsible for reimbursing Remax for all costs and premiums incurred in obtaining this insurance.
Furthermore, all insurance policies must include a waiver of subrogation rights against Remax Regional, RE/MAX Holdings, Inc., REMAX, LLC, and other covered parties. These policies must also provide Remax Regional, RE/MAX Holdings, Inc., and REMAX, LLC with 30 days' prior written notice of any termination, expiration, cancellation, or modification. The insurance company must have an A.M. Best's rating of at least A- and a financial size category of at least VIII. Franchisees must provide certificates of insurance to Remax at least 30 days before the policy's effective date and annually thereafter.