When renewing a Remax franchise, is providing a copy of current insurance coverage required?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | The agreement you would sign if you are an existing franchisee and are renewing the Team Office Amendment is attached as Exhibit A-4. | | c. | Requirements for franchisee to renew or extend | Subsection 2.E. of Franchise Agreement and Renewal Addenda Sections 2 and 11 of Team Office Amendment | You can renew the franchise relationship if: • you have complied with the terms of the Franchise Agreement; • you have exercised diligence in developing your Office during the term in a manner acceptable to us; • you sign a form authorizing RE/MAX Regional to obtain a consumer report and conduct a credit and background check; • you provide us with a copy of your current financial statement; • you meet our then current subjective and objective standards for new franchisees; • you provide written notice of election to renew at least 6 months prior to the expiration of the Franchise Agreement; • you complete required educational courses; • you sign the then current form of Franchise Agreement, including the then current form of renewal addendum (both of which may have materially different and less favorable terms and conditions from your original contract) at least 90 days prior to the expiration of the Franchise Agreement; and • you pay the renewal fee (or if you are paying the renewal fee in 12 equal payments, then the first monthly payment) at least 90 days prior to the expiration of the Franchise Agreement. If you renew the Team Office Amendment, you will be required to pay the Team Office renewal fee and execute the form of amendment that RE/MAX Regional is then using for the grant of rights to a Team Office. | | d.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 81–88)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, providing a copy of current insurance coverage is not explicitly listed as a requirement for renewal. However, maintaining insurance coverage is a general requirement during the franchise term, and failure to do so can lead to termination of the franchise agreement.
Specifically, to renew a Remax franchise, a franchisee must meet several conditions, including compliance with the existing Franchise Agreement, demonstrating diligence in developing their office, authorizing a credit and background check, providing a current financial statement, meeting Remax's standards for new franchisees, providing timely written notice of intent to renew, completing required educational courses, signing the then-current Franchise Agreement and renewal addendum, and paying the renewal fee. While a current financial statement is required, proof of current insurance is not mentioned in the enumerated list of requirements for renewal.
However, the FDD states that Remax Regional can terminate the Franchise Agreement if the franchisee commits any of the violations listed in Section 13 of the Franchise Agreement. Among the curable defaults, the franchisee has 30 days to cure insurance requirement defaults. Therefore, while not explicitly required for renewal, maintaining adequate insurance is critical to avoid potential termination of the agreement, which would obviously impact the ability to renew.
Prospective franchisees should confirm with Remax whether providing proof of current insurance is implicitly required as part of meeting the general compliance terms of the existing Franchise Agreement during the renewal process. It would be prudent to clarify this point to ensure a smooth renewal process and avoid any potential issues related to insurance coverage.