What entities must be named as additional insureds on the required insurance policies for a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
itional insureds, provide coverage to REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC on a primary and noncontributory basis, and contain a waiver by the insurance carrier of all subrogation rights against REMAX Regional, RE/MAX Holdings, Inc., REMAX, LLC and other parties covered by the insurance. You should also consult with an insurance advisor regarding whether there are any additional insurance policies that you should obtain.
(3) Commencement; Identify REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC as Additional Insureds.
All required insurance policies must commence the day the Office begins business operations and must name REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC (and other Related Parties that we may designate, as well as their respective officers, directors, and employees) as additional insureds. The total limit of the insurance available to REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC under these insurance policies is to be primary and noncontributory. As such, each required insurance policy must provide REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC primary and noncontributory insurance coverage, meaning each policy must contain language stating to the effect that such policy will be primary to all other insurance available to REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC and such insurer will not seek contribution from any other insurance available to REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC.
(4) Waiver of Subrogation; Obligation to Notify REMAX Regional of Changes.
All insurance policies must contain a waiver by the insurance carrier of all subrogation rights against REMAX Regional, RE/MAX Holdings, Inc., REMAX, LLC and other parties covered by the insurance and must contain a provision that REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC receive 30 days prior written notice of termination, expiration, cancellation, or modification of any such policy.
(5) A.M. Best Insurance Rating.
All insurance coverage required pursuant to this Subsection must be maintained under one or more policies of insurance—and contain such terms and conditions—as specified from time to time by REMAX Regional. You agree to obtain insurance policies with an insurance company that has an A.M. Best's rating of at least an A- and an A.M. Best's financial size category of at least VIII.
(6) Certificates of Insurance Must be Provided at least 30 Day Prior to the Effective Date of Procurement, and thereafter at least Annually or at our Request.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees are required to name specific entities as additional insureds on their insurance policies. These entities include REMAX Regional, RE/MAX Holdings, Inc., and REMAX, LLC. This requirement extends not only to the franchisee's own insurance policies but also, using best efforts, to the automobile liability insurance policies of each Sales Associate in the franchisee's office. Furthermore, these policies must provide primary and noncontributory coverage to the aforementioned entities.
This requirement ensures that Remax and its related entities are protected under the franchisee's insurance coverage, offering them a direct avenue for claims and protection against potential liabilities arising from the franchisee's operations. By being named as additional insureds, these entities can directly benefit from the insurance coverage without having to rely solely on the franchisee's policy. This setup also typically includes a waiver of subrogation, preventing the insurance company from pursuing Remax for any claims they pay out.
The FDD also states that Remax Regional has the right to change the minimum amount of coverage required and to require different or additional kinds of insurance. Moreover, all insurance policies must contain a waiver by the insurance carrier of all subrogation rights against REMAX Regional, RE/MAX Holdings, Inc., REMAX, LLC and other parties covered by the insurance and must contain a provision that REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC receive 30 days prior written notice of termination, expiration, cancellation, or modification of any such policy.
For a prospective Remax franchisee, this means they will need to ensure their insurance policies, and to the best of their ability, the policies of their Sales Associates, include these entities as additional insureds. They must also confirm that the policies provide primary and noncontributory coverage and include a waiver of subrogation. Additionally, franchisees should maintain open communication with Remax Regional regarding any changes to insurance requirements and promptly provide certificates of insurance to demonstrate compliance.