Does the insurance coverage that Remax requires a franchisee to obtain relieve the franchisee of any obligations under Section 5 of the Remax franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You must at all times during the Term of the Franchise and this Agreement, and any extension or renewal thereof, maintain in force at your sole expense such insurance coverage that we require from time to time and to meet the insurance related obligations in this Agreement (your obligation to obtain and maintain the insurance described below shall not be limited in any way by reason of any insurance we or our Related Parties maintain, nor will your performance of such obligations relieve you of any obligations under Section 5 of this Agreement). This insurance shall include, at a minimum, the following coverage:
a. Comprehensive General Liability.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, acquiring the required insurance coverage does not relieve a franchisee of their obligations under Section 5 of the franchise agreement. The FDD states that the franchisee's obligation to obtain and maintain insurance shall not be limited in any way by reason of any insurance Remax or its related parties maintain. It also states that the franchisee's performance of such obligations will not relieve them of any obligations under Section 5 of the Agreement.
This means that even if a Remax franchisee secures all the insurance coverage that Remax requires, they are still responsible for fulfilling all the requirements outlined in Section 5 of the franchise agreement. Section 5 likely covers other operational or financial responsibilities separate from insurance.
Prospective Remax franchisees should carefully review Section 5 of the franchise agreement to fully understand their obligations. They should not assume that meeting the insurance requirements means they have satisfied all their contractual duties to Remax.